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FSA warns against heavy-handed EU regulation of hedge funds
February 9, 2010
The chief City regulator added its weight Monday (Feb 8) to growing concerns that EU plans for regulating the hedge fund industry will prove chaotic and excessively costly to implement.
The Financial Services Authority said a proposed directive still carried "significant risks", even though some stricter rules were toned down during negotiations between member states.
The comments followed warnings by a group of City lawyers that the directive could lead to "systemic failure" in European markets if it were passed in its current form.
In a sustained attack on the directive, the financial markets law committee said the directive would "create significant legal uncertainty leading potentially to systemic failure and widespread market disruption, unless they are appropriately amended".
Original Posting At: TheGuardian
The Financial Services Authority said a proposed directive still carried "significant risks", even though some stricter rules were toned down during negotiations between member states.
The comments followed warnings by a group of City lawyers that the directive could lead to "systemic failure" in European markets if it were passed in its current form.
In a sustained attack on the directive, the financial markets law committee said the directive would "create significant legal uncertainty leading potentially to systemic failure and widespread market disruption, unless they are appropriately amended".
Original Posting At: TheGuardian
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