The European Union, which has been in favor of new rules and capital requirements for hedge funds and private equity, will propose such regulations next month to the European Commission, Reuters reports.

Earlier, the EU said that no regulation was needed, possibly in light of the industry’s call for best practices and self-regulation. Recently, however, Charlie McCreevy, the commissioner of internal markets at the EU, has been under pressure to reverse that decision.

At the G20 meeting on financial services last weekend, politicians agreed that at the least, hedge funds and private equity firms should draft best practices.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.