Hedge funds: smarter regulation, not over-regulation needed
Posted, September 23, 2008 @ 15:00
Financial services sector still crucial to Britain's economy
Brussels, 23rd September 2008 -- The financial services sector is crucial to small businesses and jobs across the UK, and while we must ensure full transparency and openness, a one-size-fits-all knee-jerk reaction at the European level should be resisted, John Purvis MEP, Vice-President of the European Parliament's Economic and Monetary Affairs committee, said today.
The European Parliament has today passed a report authored by former socialist Prime Minister of Denmark, Poul Nyrup Rasmussen MEP, which had initially called for heavy regulation on hedge funds and private equity firms. However, amendments tabled by centre-right MEPs have signalled the parliament's support for ensuring regulation is sufficient, but continues to attract inward investment. Mr Purvis said:
"The financial services industry is crucial for big and small businesses, and countless jobs in Britain. An overzealous knee-jerk reaction in Europe is futile in a global economy.
"The response from Europe should be measured and international. We should accept that there needs to be a greater level of openness and transparency from hedge funds but the European Parliament is right to avoid rushing into overzealous legislation."