Page last updated at 11:04 GMT, Tuesday, 16 March 2010

Hedge fund rules vote to be delayed

Canary Wharf
London-based funds said the changes would be unfair

European finance ministers have delayed plans to vote on a controversial new directive regulating hedge funds and venture capital investment.

The issue was taken off Tuesday's agenda in Brussels because more time was needed to reach a consensus.

London-based fund managers have said the proposals will make it impossible for funds based outside the EU to raise funds within Europe.

And the US government has also argued the plans are protectionist.

US Treasury chief Timothy Geithner complained last week that the draft directive could hurt US hedge funds, private equity groups and banks by restricting their opportunities to do business with Europe.

BBC Europe business reporter Nigel Cassidy said that continental proponents of the directive, notably France, might have felt it unwise to push the directive through on a majority vote, in the run-up to a UK election.

London concerns

A spokeswoman for the EU's Spanish presidency said hedge funds were "off the agenda to allow more time for us to obtain the maximum level of support possible".

"It will come back in during a later meeting of finance ministers during the Spanish presidency," she added.

Critics of the proposed changes say that, if approved, the laws would see many funds flee London to Switzerland or elsewhere outside the EU.



Print Sponsor


RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites



FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC navigation

BBC © 2013 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific