BRUSSELS (MNI) – After months of wrangling, European Union finance
ministers have reached a deal on a new set of rules for hedge funds,
private equity firms and other investment vehicles, Belgium’s finance
minister, Didier Reynders, said on Tuesday.
Finance ministers from the EU’s 27 member states attended a meeting
in Luxembourg on Tuesday, where the proposed new rules were one of the
main topics.
“Now we have a firm agreement,” Reynders said, adding that the
decision was unanimous and was “fully supported by all member states.”
The legislation had been held up after countries couldn’t agree on
the basis for a “European passport” – a system which would allow hedge
funds approved in one country to sell to investors in all 27 EU states.
France wanted a stronger system, while the UK – where many hedge funds
are based – wanted EU hedge funds to have the same rules as those in the
rest of the world.
“The passport will have to be earned, based on a solid foundation,”
European Commissioner for Internal Markets, Michel Barnier, said. “It’s
been a long negotiation, but finally an effective one,” he added.
The agreed deal will now need approval from lawmakers at the
European Parliament.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
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