European Union finance ministers on Tuesday abandoned efforts to reach a compromise deal over the EU's proposals to tighten regulation of hedge funds and private equity after a last-minute intervention by Gordon Brown, the British prime minister.The proposed Alternative Investment Fund Manager directive, the first effort at drawing up EU-wide rules for the industry, has faced sharp criticism from both private equity and hedge funds. The most controversial part of the directive focused on rules for non EU funds and managers, which critics said unfairly discriminated against US fund managers as well as those in offshore jurisdictions. The draft's tough rules for depositories, banks that hold funds' assets, disclosure requirements for private equity held companies and limits on borrowing by hedge funds have also caused controversy. ... British officials accuse France of pushing aggressively to curb the activities of hedge funds and private equity. But Nicolas Sarkozy, French president, told Mr Brown last week he would be flexible in searching for "a point of equilibrium". Downing Street officials said Paris had agreed to defer a vote - rather than forcing the issue and inflicting a defeat on Britain - a sign of the constructive working relationship between the British prime minster and Mr Sarkozy.
European Union finance ministers on Tuesday abandoned efforts to reach a compromise deal over the EU's proposals to tighten regulation of hedge funds and private equity after a last-minute intervention by Gordon Brown, the British prime minister.
The proposed Alternative Investment Fund Manager directive, the first effort at drawing up EU-wide rules for the industry, has faced sharp criticism from both private equity and hedge funds.
The most controversial part of the directive focused on rules for non EU funds and managers, which critics said unfairly discriminated against US fund managers as well as those in offshore jurisdictions.
The draft's tough rules for depositories, banks that hold funds' assets, disclosure requirements for private equity held companies and limits on borrowing by hedge funds have also caused controversy.
...
British officials accuse France of pushing aggressively to curb the activities of hedge funds and private equity. But Nicolas Sarkozy, French president, told Mr Brown last week he would be flexible in searching for "a point of equilibrium".
Downing Street officials said Paris had agreed to defer a vote - rather than forcing the issue and inflicting a defeat on Britain - a sign of the constructive working relationship between the British prime minster and Mr Sarkozy.
