The global financial crisis has put an end to the cosy environment in which the financial industry had operated up to now. In keeping with their G-20 commitment, the European Commission has published draft rules for hedge funds, which bring all non-harmonised funds under the EU’s regulatory umbrella, largely reproducing the rules of existing directives, and adding some new elements in response to the crisis.
This European Capital Markets Institute (ECMI) Commentary by Karel Lannoo considers the European Commission’s draft rules on hedge funds and asks: if the rules are in line with the recent policy consensus on regulation in this area, should we wonder if the finance industry has something to hide in its resistance to them?