Hedge Fund Reader : Hedge funds caught in the battle of regulation

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September 17, 2005

Hedge funds caught in the battle of regulation

The story has taken another twist in itself. After the forceful impact put forth against the Hedge Funds by the German and the Dutch authorities, it seams to be all in vain. Mr. Arthur Docters van Leeuwen, Chairman of the Committee of European Securities Regulators (CESR) quoted at the European Parliament's economic affairs committee. CESR is a European body of all national financial market regulators from the 25 European Union member states advising the EU on stabilizing EU financial rules. He believes that Hedge Funds are too minuscule to draw ones attention. They are quite diminutive do not have the potential to create havoc in the financial markets. But, it is yet to be seen if the regulation would ever be forced on the Hedge Funds and if so, would it be because of the diplomatic pressure or to save the individual investor from burning his fingers. Reuters Reports:

"There is still not a strong case for regulating hedge funds per se," Arthur Docters van Leeuwen, Chairman of the Committee of European Securities Regulators told the European Parliament's economic affairs committee. CESR is a pan-European body that comprises all national financial market regulators from the 25 European Union member states, and advises the European Commission on fleshing out EU financial rules.

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September 17, 2005 in Regulation | Permalink