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Osborne set for defeat on hedge fund fight

George Osborne is likely to be forced to accept stricter hedge fund and private equity legislation as European finance ministers prepare to crackdown on the industry. 

On his first visit today to Brussels as Chancellor of the Exchequer, Osborne had hoped to challenge the alternative investment fund manager directive for tougher regulation but French, German and Spanish EU leaders are expected to win the vote to push ahead with changes.  

Osborne believes the directive could stifle Britain’s hedge fund industry which contributes an estimated £5.3bn in tax revenues to the economy each year. 

European Private Equity and Venture Capital Association secretary general Javer Echarri says: “When considering this dossier, Europe’s finance ministers should ask themselves two questions for each proposal: will this harm companies across Europe’s real economy? And will this harm institutional investment funds unnecessarily.”

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. Exasperated me 18th May 2010 at 11:07 am

    “Osborne believes the directive could stifle Britain’s hedge fund industry which contributes an estimated £5.3bn in tax revenues to the economy each year.”

    If the amount of tax revenue produced is the only thing that makes these greedy entities socially, sorry, economically useful then we are a sad country indeed.

    The banks used that ploy on Gordon Brown, look what happened…

  2. No one has provided any solid evidence that Hedge funds are to blame.

    More likely it is the consumers and banks across Europe/USA who borrowed/lent too much money

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