UK financial industry hits out at EU hedge fund proposals
In what is becoming a concerted effort to grab more control of the UK financial sector it has been revealed that EU ministers are looking at increasing the regulatory and compliance burden for hedge funds operating in Europe. This is a backhanded attempt to snatch yet more power from the UK authorities as London is widely regarded as the financial capital of Europe.
Under new proposals private equity firms with more than €500 million under management and hedge funds with more than €100 million available for investment will be forced to file detailed financial information on a regular basis with the Financial Services Authority. While on the surface this may sound like a sensible proposal, it is estimated that the change would cost each and every private equity and hedge fund around £30,000 a year.
EU financial ministers have been looking at ways of curbing the power of financial businesses around the world and have launched a number of blatant attempts to reduce the influence of London by tightening the regulatory burden. At a time when the UK economy is struggling to move into positive ground, a tightening of the regulatory burden in the city is the last thing the country needs as a substantial portion of UK tax income is derived from the financial services industry.
