BRUSSELS -(Dow Jones)- The European Fund and Asset Management Association Monday called for harmonization of rules governing European Union hedge funds and funds of hedge funds, warning that failure to regulate the market is stifling Europe’s economic growth.
In a report published Monday, the lobby, which represents asset management worth about EUR12 trillion, presented two possible methods for streamlining hedge fund laws. One would harmonize the characteristics of hedge funds and funds of hedge funds at European level. Another plan would create pan-European rules about what type of investor can buy a certain type of hedge fund or fund of a hedge fund.
Hedge funds make up a substantial part of Europe’s financial market. Yet as rules governing them vary from country to country, they are hard to sell across European borders. Rules range from stipulating what constitutes a hedge fund to whether high-street investors are allowed to buy these complex and often risky products.
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