Opposition to European Union Regulation of Hedge Funds and Private Equity Firms Growing

The attempt to push new regulations down the throats of private equity firms and hedge funds by the European Union has a growing amount of opposition, as a vote has been put off for the third time as agreement can't be reached on the degree the regulations should extend.

In the region, the British are those that would be most affected by the new rules, and they oppose where it stands now, while a French and German-led faction is on the opposite side pushing against them.

If the regulations are passed close to what they are now, the United States also promises to strike back, as they consider the attempt to regulate the industry as just another form of protectionism.

The British believe, and rightly so, that if the new regulations are put in place, they will lose a large part of the industry based in London; one of the few strong British business sectors still remaining.

The bottom line after everything is taken into account, is the European Union would have more direct control (supervisions) over the hedge funds and private equity companies in the euro-zone, which primarily means businesses located in the UK.

What the regulations are allegedly attempting to do is stop certain types of investors from putting their money into what is described as "offshore tax havens," and also to cut back on pay for those executives running the companies.

According to the Confederation of British Industry, the new regulations would make firms release what would be considered highly sensitive information and data.

Lawmakers in Britain are concerned over hedge funds and private equity firms will leave the country for Asia, the Middle East or Switzerland. I think they're right, and this misguided effort should be abandoned and dropped. If they continue on with it, they can have a nice set of regulations applying to few if any companies, as they will have all left the area for more business-friendly places.