Hedge funds and private equity funds should be monitored closely but there are no plans to propose regulation, a top European Commission official said on Monday, sparking anger from left wing lawmakers. It has been the heavily regulated sector of the financial services industry, including banks, that has been allowed to "run amok with little-understood securitization vehicles," EU Internal Market Commissioner Charlie McCreevy told the European Parliament. "I don't believe it is necessary at this stage to tar hedge funds and private equity with the same brush as we use for the regulated sector," said McCreevy, who has sole powers to propose EU-wide financial regulation.
Hedge funds and private equity funds should be monitored closely but there are no plans to propose regulation, a top European Commission official said on Monday, sparking anger from left wing lawmakers.
It has been the heavily regulated sector of the financial services industry, including banks, that has been allowed to "run amok with little-understood securitization vehicles," EU Internal Market Commissioner Charlie McCreevy told the European Parliament.
"I don't believe it is necessary at this stage to tar hedge funds and private equity with the same brush as we use for the regulated sector," said McCreevy, who has sole powers to propose EU-wide financial regulation.
