Controversial new rules for hedge funds and private equity funds operating in Europe won the backing of European Union finance ministers meeting in Brussels yesterday. The move follows a similar endorsement by a group of EU lawmakers on Monday and means regulation of the industry in the region has moved much closer.
But there were significant differences between the detailed draft regulations agreed by the finance ministers and those agreed by parliamentarians. As a result, member states, parliamentarians and officials at the European Commission face potentially difficult negotiations in an effort to hammer out a common set of rules.
These talks will start on May 31 and the aim is to reach agreement before the August summer break.