EU ministers agree draft rules on hedge fund regulation

HEDGE funds and private equity firms, blamed for contributing to the current economic crisis including in Greece, moved a step closer to being regulated when EU finance ministers agreed draft rules in Brussels.

The uproar expected from Britain and its new Conservative chancellor of the exchequer, George Osborne, did not materialise, as the meeting agreed to note his concerns that non-EU fund managers would not get a passport to operate throughout the union. About 80% of fund managers are based in the City of London.

Ireland also has reservations, fearing that those who value and provide a depositary for the funds could be held liable for problems with the ensuing funds themselves.