Bloomberg – As many as 40 percent of the world\u2019s hedge funds won\u2019t have access to European Union investors if EU plans to oversee funds and private equity are passed in their current form, an official at Britain\u2019s regulator said.<\/p>\n
Investors from the 27 member-state bloc won\u2019t be able to access 40 percent of hedge funds and 35 percent of private equity firms under EU proposals because of so-called equivalence requirements, a Financial Services Authority official said, citing a report. The requirements test whether countries where funds are based have similar tax and legislation to the EU.<\/p>\n
\u201cIt would drive legitimate business models offshore,\u201d said Dan Waters, the FSA\u2019s asset-management sector leader, in a speech in London published yesterday. \u201cIt cannot be a sensible outcome from the directive that investor protection is delivered at the expense of the protection of financial stability.\u201d<\/p>\n