WSJ – Hedge funds and private-equity funds based outside the European Union should be subject to strict rules if they do business in the 27-nation bloc, according to legislation drafted by the Spanish government.
Spain, which currently holds the EU’s six-month rotating presidency, wants foreign funds that market their services in the bloc to make their annual report available to investors and regulators as well as be subject to close scrutiny by a regulator that shares information with EU authorities. The funds targeted generally are loosely regulated hedge funds, venture capital funds and private-equity investments based in the U.S. and elsewhere; mutual funds sold to individual investors tend to be registered in an EU country.
