By Martha Moss - 25th June 2010
With regret I must note that the Spanish presidency of the EU was not able to present a suitable compromise text agreeable to all sides
Jean-Paul Gauzès
Jean-Paul Gauzès has confirmed that the European parliament has postponed adopting tough new rules to regulate hedge funds and private equity.
Parliament had been due to adopt the alternative investment fund managers (AIFM) directive - which aims to strengthen regulation on Europe's financial services industry - in July.
However, French EPP deputy Gauzès, parliament's rapporteur on the directive, said the vote would not take place until the second plenary session in September.
Some EU countries, including France and Germany, warn that hedge funds present a risk to the world's financial stability, so need more regulation.
However, there has been opposition from other EU member states, particularly the UK, with the City of London home to 80 per cent of European hedge funds.
The UK is warning that the new rules could make it more difficult for fund managers to trade across the 27-nation bloc.
MEPs had met with national ministers earlier this week in an attempt to agree a compromise.
But Gauzès said on Friday, "With regret I must note that the Spanish presidency of the EU was not able to present a suitable compromise text agreeable to all sides.
"I have now met with the Belgian minister of finance and the discussions were fruitful.
"Work will continue during the Belgian presidency and I am confident that an agreement will be reached in time for a September vote."
EU internal market commissioner Michel Barnier is quoted by the Reuters news agency as saying, "The quicker we can reach a final agreement, the better."
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