London Stock Exchange- Criticism has been levelled at the European commission (EC) over alleged complacency over hedge funds, with critics claiming that the commission is not doing enough to regulatethe sector.
These calls have come from trade union members who argue that hedge funds have only become a priority in light of recent financial market volatility. Otherwise, they would normally go without thenecessary attention, it has been proposed.
According to the European Trade Union Confederation (ETUC) it has “taken a crisis to awaken policy makers” to the risks linked to recent hedge fund growth, reports euobserver.com.
Hedge funds have been embroiled in the troubled US sub-prime sector, which led to repayment problems in hedge funds when high-risk mortgage borrowers began defaulting on their loan repayments.
Some argue that a large part of the problem is that hedge funds are simply not transparent enough, with little clarity over the level of investment.
