Hedge Fund Regulation? You Can't 'Regulate' the British Empah! So Say the Brits...

WIESBADEN, May 9 (EIRNS)--As reported by German news wires today, unnamed German and other European Union diplomats have accused "Britain, where most of the funds are registered anyway," with the sabotage of even a modest proposal for hedge fund transparency at yesterday's meeting of the 27 EU finance ministers in Brussels.

As a result, the meeting did not decide for any regulatory measures against locust funds. But German finance minister Peer Steinbrueck reiterated that the discussion will proceed, that "many market players want some controls," and that therefore, he is rather optimistic that at some point, a code of conduct for funds will be agreed between EU and G-8 governments.

According to hints from the Finance Ministry, Germany will not wait for other countries, but is determined to make a first step with national legislation to "protect the industry against funds." Under the pending new legislation, a fund or group of funds that acquire 10 percent of a company's shares, will be obliged to publish their further plans in respect to that company.

Existing legislation that requires transparency from individual investors who hold 3 percent, has proven ineffective, as more and more banks provide cover for the funds, allowing them to operate without nominally violating the 3-percent rule.