Moment of truth approaches for financial markets

S&D Euro MPs today set out a blueprint for avoiding fresh financial scandals in Europe, a week before a crucial vote at the European Parliament’s economic and monetary committee on regulation of Hedge funds.

Said S&D group spokesman Udo Bullmann: “We are coming to the moment of truth. After months of discussion, the Parliament is about to vote. We will back measures to enforce wide-ranging, effective and transparent regulation of financial markets.

“The Hedge funds have played an active part in worsening the financial crisis because of their level of debt. Now it is time for them to act transparently and be restricted in their abuses”.

Key S&D points on regulation of alternative investment fund managers include:

  • The directive should cover as many actors on the financial market as possible, with few exemptionsl;
  • Access of foreign funds and their managers to the EU market should be subject to strict rules including the respect of all obligations of the directive. This will give EU investors better protection and ensure a level playing field;
  • Private equity’s ability to transfer debts of acquisition to the company acquired should be curbed; and
  • Funds should be more transparent in their dealings with the authorities, investors and employees.