The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Hedge funds assert their case

A wave of regulation following the initial impact of the global financial crisis has targeted the alternative investment sector, and hedge funds in particular. The industry is mobilising to influence and deflect some of the measures. Caroline Allen reports

This article appears courtesy of Global Investor

Five years ago, hedge funds were at the pinnacle of the industry, the envy of the lower investing orders. But the global financial crisis has put the sector on the back foot, with a series of measures now set to curtail previous activities. Due partly to its culture of discretion and individuality, it may have been slow to respond, but it is now mobilising to defend its role and future.

Among the initiatives in the pipeline: laws from the UK, the US and the new EU Directive. Just days before the European elections, the European Commission proposed a comprehensive and aggressive restructuring plan for the way financial services institutions are supervised. The move comes just three months after a consultative report from Jacques de Larosière, chairman of the High Level Group on Financial Supervision in the EU, recommended phased implementation of a new supervisory regime.

EU Commissioner Charlie McCreevy said financial supervision in Europe has not kept track with market integration. "The crisis has shown that the current system is not sufficiently responsive and not appropriate for a single financial services market. This new system will combine the expertise of all those responsible for safeguarding financial stability, with strong European bodies to coordinate their work."

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree