An area in which Parliament would have liked to go further

The France may come to Seoul to take the Presidency of the G20 in mid-November by taking advantage of an agreement of Europe on the regulation of "hedge funds" and "private equity" funds The European Parliament, the Belgian Presidency of the Union representing the Member States and the European Commission yesterday found a final agreement on the famous draft directive to supervise the activity of hedge funds managers for the first time. Funds still weighing 1,200 to 1,300 billion in the world, 2,000 billion before the crisis, and representing some days half of the exchanges made on the markets.

MEPs have agreed, for the most part, the text unanimously approved the week last by the Member States, without pull yesterday with other concessions as a more extensive review clause. Scheduled for 2017, it will allow in particular to review the provisions of the text on the "private equity", notably to prevent that non-European managers are subject to any rules in the Union when they take control of businesses European. The vote of the MEPs in plenary on 11 November should be only a formality. Summary of a text which the main advanced, according to the European Commissioner for the internal market and Financial Services, Michel Barnier, is simply to exist.

A "European passport" for managers

This is in fact two "passports": one for European managers, that would of course apply as early as 2013. the other for non-Europeans, extorted by the United Kingdom, the Parliament and the Commission, will take effect in 2015. The mechanism will allow the as to each other to market their funds across the EU through the green light to a single national supervisor. Under pressure from London, national regimes for private placement will end only in 2018. At the request of Paris, the Esma, the future European authority for the financial markets which the Union must develop by early 2011, will play an important role in the device ("Les Echos" from October 20).

Leverage

The text provides no ceiling. But it requires managers to more transparency: they must thus set limits on the subject for each fund that they manage and to inform their supervisor, but also the Esma and the future European systemic risk Board. National supervisors will be able to Cap leverage for a fund if it posed a threat to financial stability, the Esma coordinating their action. Managers must also inform the supervisor, the Esma and the Committee of the systemic risk of the markets in which they operate and the instruments they use, but also their main exhibitions risk.

Custodians

The function will be very framed to avoid type new scandal Madoff. Loss of assets, the depositary must demonstrate that it does nothing to exonerate from its responsibility. If he has delegated certain tasks, or even transferred his liability to a third party, the Fund and its manager must be able to return against the latter to demand damages.

Whaling

"Private equity" funds will not distribute in dividends more than the sum of the capital and reserves during the first two years, if the company which they control is not beneficial. An area in which Parliament would have liked to go further. The Fund will also have obligations of transparency the target companies and their employees.

Passive marketing

No rule is provided in the body of the text to compel the European investors to do some "due diligences" before investing in a foreign Fund.

Remuneration of the managers

With some adaptations, they must respect the same rules as those applicable to the bankers under the regulations on the prudential rules.