London officials including Mayor Boris Johnson will today urge the European Parliament to modify proposals to tighten scrutiny of hedge funds and buyout firms, calling the steps “narrowly protectionist.”
Bloomberg – The rules under consideration in Brussels would limit the amount of borrowing the funds can use and require the use of European-domiciled banks. Around 80 percent of Europe’s $300 billion in hedge funds assets are managed from London, according to City Hall.
If the legislation goes ahead unchanged, “it will be narrowly protectionist, fail to take account of other global players (including the U.S.), and damage an important EU industry,” Stuart Fraser, who chairs the City of London Policy Committee and will join Johnson in Brussels, said in an e-mailed statement.
