Treasury refuses to examine cost of EU hedgie crackdown

CHANCELLOR Alistair Darling is refusing to investigate how much European plans to crackdown on hedge funds will cost the industry. <br /><br />The Treasury has admitted it will not carry out an &ldquo;impact assessment&rdquo; on a EU draft law which could damage London&rsquo;s position as a global hedge fund centre by imposing a strict disclosure regime and leverage limits. <br /><br />The government&rsquo;s own guidelines say it should commission a study into any EU legislation that could burden British businesses with extra costs. <br /><br />But responding to a freedom of information request by think-tank Open Europe, the Treasury said: &ldquo;Because of the very foreshortened timescale on which the directive is being negotiated, we will not be publishing a formal impact assessment.&rdquo;<br /><br />Open Europe research head Mats Persson said: &ldquo;The UK government is behind the curve on this and they are breaking their own principles on better regulation.&rdquo;