EU approves hedge-fund rules to restrict bonuses

HEDGE-fund and private-equity regulations that will restrict bonuses and require increased disclosure have been approved by European Union negotiators representing the European Parliament and 27 member states.

The accord will allow the rules for hedge-fund managers to become part of EU law as soon as next year.

Finance ministers from the EU agreed on a compromise at a meeting in Luxembourg last week to give the European Securities and Markets Authority powers over a so-called passport system for non-EU hedge-fund managers. The Brussels-based European Commission proposed the rules last year.