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 industrys 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.
