The European Commission said today there is no immediate need to intervene in the regulation of hedge funds.
"Our analysis suggests that there are currently no regulatory gaps which call for EU-level intervention to regulate hedge funds above and beyond those measures that are already in place at national and European level," according to an EC white paper on modernizing the European Union's roughly €5.5 trillion ($7.046 trillion) investment fund market.
The commission also said hedge funds should not necessarily be subject to stricter transparency laws. "The commission's view is that effective initiatives have been undertaken at (an) international level that such mechanisms not only function satisfactorily but also cater to the flexibility that market participants need," according to commentary on the paper on the EC's website. "The commission sees even less rationale for curtailing the ability of these categories of investor to exercise the voting powers that they acquired in publicly quoted companies."
The commission plans to propose any changes next fall after conducting further studies and examining real estate funds, according to a news release.