JSM Financial: EU draft legislation could seriously obstruct hedge fund access to Europe.

A new directive from the European Parliamentary body could prevent as much as 80% of the globe’s hedge funds from accessing European investors.
 
May 21, 2010 - PRLog -- JSM Financial has learned that a recent draft directive passed by the European Parliament’s Economic and Monetary Affairs Committee dealing with hedge funds and private equity has caused waves throughout the industry.

The contentious provisions of the new draft directive include a ban on investments in non-European Union funds that do not conform to conditions laid out by the EU. These conditions include a requirement for non- European Union-based hedge funds to submit to rulings by European courts on issues arising from the directive.

"Non EU managers from America, Switzerland and Asia, and even EU funds domiciled in places like the Cayman Islands will be affected,"  JSM Financial believes Andrew Baker, chief executive of the Alternative Investment Management Association recently told reporters.

Industry analysts have also indicated that it is possible that the U.S. and other nations may retaliate against the EU if the directive were to be written into law which may lead to the industry fragmenting into groups that take money exclusively from a certain part of the world.

"History and common sense tell you that some of the extreme positions will be diluted," JSM Financial understands that Baker went on to say, adding that it was unclear to what extent the conditions will be relaxed when the actual directive comes into law.

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JSM Financial is an independent broker focused on the realization of superior returns from seed stage and early-stage equity investment and active partnerships with exceptional entrepreneurs building market-leading technology companies.
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