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EU's Hedge Fund Directive costly, wrongly targeted, slows recovery - Andreasen
Date 04/06/2010 16:56  Author webmaster  Hits 1731  Language Global
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• Speaking at the journalists' roundtable on the Hedge Fund Directive (AIFM), Wednesday in Brussels, UKIP MEP Marta Andreasen said in the presence of the rapporteur and other shadows on the directive, that the directive will cost investors money, reduce returns, and slow the recovery of the economy from the crisis. 
 
"The financial crisis... was not caused by the hedge funds, it was caused by the banks," Marta Andreasen said. "And it was not caused because of lack of regulation; it was caused by the lack of implementation of this regulation - by the lack of proper controls." 


Referring to the costs that this directive adds, she said these will be transferred to the investors. Alternatively, businesses might consider moving out of Europe.
 
"We are using elements and controls which are excessive in the light of what has caused this crisis," she added.
 
"The directive wants to cover everything, all investment instruments, even the type of instruments that really have no risk at all, which is the case with investment trusts."

Ms Andreasen concluded: "I would like to express my deep concern in relation to the powers that are being granted to the Commission, powers that are defined very vaguely and that in practice will become unlimited."
 
Marta Andreasen also pointed out that the protectionist nature of the directive will invite retaliation from third countires, as we are already seeing in the United States.
www.ukip.org
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