WEST PALM BEACH, FL (HEDGECO.NET) – German banks and other financial institutions are making final preparations for introducing hedge funds to German investors. Hedge funds became legal this year inGermany, as the global hedge fund wind finally swept across Germany. In another related story, the European Parliament voted to relax rules that would lead to the introduction of retail hedge fundswithin the European Union.
A Scottish Parliament member, John Purvis argued during the debate �There is no reason to deny European citizens access to these interesting investment opportunities. But we feel their interests will be better safeguarded if they are available within EU jurisdictions and subject to appropriate regulation� Purvis added, �They also will provide opportunity for our European investment professionals to enhance their skills and build high value businesses and jobs. And, not least, capital will be attracted to our businesses and industries here in Europe rather than in America and other parts of the world.”
This follows a report last year by Dr Oonagh McDonald in which she recommended that traditional 10 per cent cap be maintained for retail investors, The European Union MEPs however decided not to recommend imposing restrictions on who can buy hedge funds. Instead, they decided that regulators in individual member countries should determine such details.
In Germany, lawmakers passed the Investment Modernization Law in 2003, that law took effect Jan. 1, 2004, clearing the road for the establishment of Hedge funds into the country. So far no funds have been launched yet in Germany, but several firms are scrambling to do that soon. According to news reports, two companies; DSW and Union Investment, are getting ready to unveil their first hedge fund products by March. Another firm known as Deka is planning to launch its hedge fund by the middle of the year. No further details are provided.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
editor@hedgeco.net
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