America joins hedgie fight as UK looks for Swedish support

THE US yesterday waded into the row over the European Commission&rsquo;s (EC) plans to strictly regulate hedge funds that do business in the region <br /><br />Officials from the US authorities are quietly lobbying finance ministers in Europe in a bid to overturn a draft law that would impose a burdensome disclosure regime and leverage limits on hedge fund managers marketing their products in the European Union. <br /><br />America&rsquo;s efforts to thwart the law come as the Alternative Investment Management Association (Aima) in Britain said it was cautiously optimistic about securing the support of Sweden, which recently assumed the presidency of the EU. <br /><br />Sweden&rsquo;s backing would be a major advance in the UK&rsquo;s attempts to get broader support in its attempts to derail the draft law. <br /><br />Meanwhile, Aima stepped up its attack on the EC proposals. It said plans to force managers who want to market their funds in the region to hold a &ldquo;passport&rdquo; were &ldquo;protectionist in effect, if not in intent&rdquo;.