WEST PALM BEACH, FL (www.hedgeco.net) – The Internal Market Commissioner for the European Union, Charlie McCreevy has taken sides with the European hedge fund industry. McCreevy has vowed thatregardless of the growing concerns over hedge fund exposure risks, he would not create any new oversight regulations for European hedge funds. He dismissed unfounded speculations that his regimewould institute new regulations for the growing hedge fund sector. He said he would be establishing a period to organize and streamline the European hedge fund sector.
The European hedge fund industry has indicated objections for any efforts to regulate the industry, objections to such regulations are strongest in London, considered the hub for the European hedge fund establishment. But other countries such as Germany favor some type of regulations for hedge funds. The inclination of the German government towards hedge fund regulations come from the disaffection of the German government over the participation of hedge fund investors in the removal of the German head of the stock exchanges a few months ago.
McCreevy said he rejects any speculation that he wants to regulate hedge funds. �I certainly am not, some of these views I don�t agree with,� he explained. He also noted that he opposes efforts that could lead to overregulation of the European hedge fund industry. McCreevy however acknowledged that the debate about regulating the hedge fund industry is necessary, regardless of the divergence in opinions over the matter.
Many investors in Europe want hedge fund investment strategies to be open to more European investors. Currently only qualified affluent investors are able to invest in hedge funds in Europe. It is unclear how such issue may play out over time, but investors in Europe are also increasingly attracted to hedge funds and their investment strategies.
McCreevy added, �New additions to investment laws in Europe should offer the potential to reduce costs (of running funds), add billions to the value of investments, enhance investor confidence, boost economic growth and play a significant role in tackling Europe’s looming pension crisis.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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