European Union regulators could have greater transparency into hedge fund, private equity and other alternatives fund managers under a draft directive published today by the European Commission that would allow for better macro-prudential oversight, according to the EC.
The new proposal, which require approval of the European Parliament and EU governments, would apply to all alternatives managers whose leveraged portfolios are €100 million ($130 million) or greater, or whose unleveraged portfolios are €500 million or greater, and would affect roughly 30% of hedge fund managers running almost 90% of assets of hedge funds domiciled in the EU, according to the commission. The EC did not say to what extent private equity or other alternatives managers might be affected.
Florence Lombard, executive director of the hedge fund industry group Alternative Investment Management Association, said in a news release that the directive undermines work under way by the Group of 20 and other international organizations.
It also conflicts with the (G-20)s global plan for recovery and reform, which calls for regulators and supervisors to reduce the scope for regulatory arbitrage and to resist protectionism, Ms. Lombard said.