×

EU lawmakers to vote on hedge funds, supervision

BRUSSELS, May 10 (Reuters) - European Union lawmakers are due to vote on Monday to control hedge funds and centralise market supervision as part of wider efforts to learn from the financial crisis and better protect investors. The European Parliament's economic affairs committee will vote on a draft law that will require managers of hedge funds, private equity groups and other alternative investments to register and undergo direct supervision in the EU. The measure, which is due to become law in 2012, also needs the blessing of individual EU countries and remains mired in a dispute between Britain and France. The rules would include curbs on pay, such as an end to "golden handshakes", as well as strict limits on private equity investors trying to extract dividends from companies within the first four years of ownership.

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ FACTBOX on hedge funds, supervision measures Q&A-How fear of speculators drives EU leaders ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ The lawmakers will also vote on a separate measure to give more clout to pan-EU markets, insurance and banking watchdogs that would let them curb market betting like short selling of shares. "We are going further ... in strengthening the new authorities. The crisis in Europe shows that we are right to do so," said Antolin Sanchez Presedo, one of the lawmakers who will present parliament's demands. Last December, British Finance Minister Alistair Darling agreed to let the EU establish new authorities to police financial services but only on the condition a country could veto their decisions if they would cost public money. Lawmakers in Brussels want to do away with this blanket veto by insisting that a country that challenges a ruling must first prove it would cost taxpayer money and then convince a majority of other European countries that this would happen. Keywords: EU FINANCIAL/REGULATION (Reporting by John O'Donnell; editing by Jason Webb, +32 2 287 6817 or +32 473 92 48 90; john.odonnell@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.