Bringing hedge funds into the regulatory mainstream

Karel Lannoo, chief executive, Centre for European Policy Studies

The European Commission’s draft rules for hedge funds, in keeping with their G-20 commitment, have been a long time coming. The rules bring all nonharmonised funds under the EU’s regulatory umbrella, largely reproducing the rules of existing directives, and adding some new elements in response to the crisis. They introduce a single licence for such funds, something that does not exist today.