The European Union canceled talks on regulation of hedge fund and private equity managers after governments clashed on the final shape of proposals.
European nations disagree on the powers of the European Securities and Markets Authority to decide which hedge funds will be allowed to market to EU investors, Sharon Bowles, the European Parliament’s top financial lawmaker, said in a telephone interview.
“Many countries have doubts over the role of ESMA,” Ms. Bowles, who chairs the Brussels-based Parliament’s economic and monetary affairs committee, said. Nations also disagree on “how quickly to grant” non-EU hedge funds access to Europe, she said.
The European Commission, the EU’s executive arm, proposed rules last year to regulate hedge fund and private equity managers, which would restrict bonuses and require investment strategies to be disclosed to regulators. Michel Barnier, the EU financial services commissioner, said on Monday that negotiations on the proposals were entering a “decisive” stage.
Diplomats, lawmakers and commission officials had been scheduled for talks on Thursday aimed at reaching an accord on the rules.
Bowles said the disagreements between governments mean more time is needed before the three groups can thrash out an agreement. The Parliament delayed an Oct. 20 vote on the measures until next month.
