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Fears over EU hedgie rules
THE EU ignored the advice of regulator ESMA in around 40 areas in drawing up a controversial new hedge fund directive, industry insiders said last night.
Hedge fund and private equity bosses are angry over the draft of the Alternative Investment Fund Manager (AIFM) directive and want to see it redrafted. They also want the EU to explain why it departed from the regulator’s advice. Managers are particularly concerned over the protectionist implications of the “third countries” section of the rules, which would stop EU investors putting money into non-EU funds.