{"id":4393,"date":"2006-05-09T00:00:00","date_gmt":"2006-05-09T00:00:00","guid":{"rendered":""},"modified":"-0001-11-30T00:00:00","modified_gmt":"-0001-11-30T04:00:00","slug":"eu-closes-door-on-hedge-fund-registration","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/05\/2006\/eu-closes-door-on-hedge-fund-registration.html","title":{"rendered":"EU Closes Door on Hedge Fund Regulation"},"content":{"rendered":"

WEST PALM BEACH, FL (HEDGECO.NET) – Charlie McCreevy, the EU<\/span> Internal Markets Commissioner, supported the hedge fund industry yesterday when he ruled out introducing newregulations for hedge funds, telling a European committee that they played a central role in putting the \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cfear of God\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d in company management.<\/p>\n

\n

McCreevy was asked by the economic affairs committee of European Parliament, whether the EU executive would act against Germany for planning to lower to 3 percent the threshold for notifying the market of a stake in a company. He said \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cMy own view on hedge funds is I don\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2t see a compelling case for specific EU legislation.\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d <\/p>\n

McCreevy said it was time for Germany to change the threshold, adding: \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cI don\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2t think we should necessarily start imposing any stance there. In the main, hedge funds \u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u00a6 are a catalyst for change.\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d <\/p>\n

The typical threshold in the EU is usually around 5 percent and the German step is seen by some shareholdes and companies as making it harder to mount a takeover. <\/p>\n

Hedge funds have become especially controversial in Germany recently, as they were seen as key in engineering the departure of Werner Seifert as chief executive of Deutsche Boerse. Several hedge funds with stakes in the German exchange were unhappy with Seifert\u00c3\u00a2\u00e2\u201a\u00ac\u00e2\u201e\u00a2s plan to buy the London Stock Exchange, saying it would destroy some of the shareholder value. <\/p>\n

In the USA<\/span>, under the Patriot Act, investment companies, including private investment funds, are subject to enhanced scrutiny, including a study on the potential use of investment companies for laundering money and mandating recommendations as to whether the reporting requirements of the Bank Secrecy Act, (the \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cBSA\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d), should be applied to investment companies and hedge funds. <\/p>\n

The statutory definition of \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cfinancial institution\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d includes an \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cinvestment company.\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d However, in an interim rule issued by the Treasury Department, investment companies other than mutual funds were exempted from the AML<\/span> program requirement contained in the Patriot Act. <\/p>\n

Specifically, the regulations define the term \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cunregistered investment company,\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d which is a subset of the term \u00c3\u00a2\u00e2\u201a\u00ac\u00c5\u201cinvestment company,\u00c3\u00a2\u00e2\u201a\u00ac\u00c2\u009d to include investment vehicles such as hedge funds, private equity funds, venture capital funds, commodity pools and REI<\/span>Ts. These companies are being required to establish an AML<\/span> regulation program that includes, the development of internal policies, procedures, and controls, the designation of a compliance officer, an ongoing employee training program, and an independent audit function to test the program. <\/p>\n

Alex Akesson
Contributing Writer
HedgeCo.Net
Email: Editor@hedgeco.net <\/p>\n

HedgeCo.Net is a premier hedge fund database and community for qualified and accredited investors only. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds! <\/p>\n

Be sure to check out our sister sites. www.hedgefundlounge.com<\/a>, www.hedgefundtools.com,<\/a><\/strong> and www.hedgefundemployment.com.<\/strong><\/a> <\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

WEST PALM BEACH, FL (HEDGECO.NET) – Charlie McCreevy, the EU Internal Markets Commissioner, supported the hedge fund industry yesterday when he ruled out introducing newregulations for hedge funds, telling a European committee that they played a central role in putting […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-4393","post","type-post","status-publish","format-standard","hentry","category-hedgeco-news"],"_links":{"self":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4393","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/comments?post=4393"}],"version-history":[{"count":0,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/posts\/4393\/revisions"}],"wp:attachment":[{"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/media?parent=4393"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/categories?post=4393"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hedgeco.net\/news\/wp-json\/wp\/v2\/tags?post=4393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}