European Union upcoming vote to regulate hedge funds

BBC, 5/16: "European finance ministers are preparing to meet to vote on a controversial new directive regulating hedge funds and venture capitalists.

• London-based fund managers have said the proposals will make it impossible for funds based outside the EU to raise money within Europe.

The US government has argued the plans are protectionist.

• Britain's new government wanted to delay Tuesday's vote, but a report suggests efforts failed....

They are more important to the UK than almost anywhere else in Europe. It is estimated that 80% of Europe's hedge funds are based in London, and about

• a quarter of the world's such businesses....

The French president Nicolas Sarkozy and German chancellor Angela Merkel have been keen for some time to introduce greater regulation for the private equity and hedge fund sectors - which many say

• played a part in the global financial collapse.

Spain currently holds the EU presidency, and its finance minister Elena Salgado told the FT that other finance ministers would not agree to a delay."...