Esma consults market on hedge fund rules
The European Securities and Markets Authority has set out policy options for the Alternative Investment Fund Managers Directive, which will create new rules for hedge funds and private equity funds.
The discussion paper seeks views from market participants on the options Esma has identified, fulfilling a mandate from the European Commission.
The overall aim is to “enhance transparency towards investors and national authorities regarding managers’ investment management activities”. This should enable EU states to improve the macro-prudential oversight of funds and take coordinated action if necessary to ensure the proper functioning of financial markets.
In particular, Esma is seeking views on how to identify funds’ portfolios and calculate their value; the effects of leverage; how to treat cross-holdings between fund managers; how to deal with managers whose assets sometimes fall below the reporting threshold; registration requirements and the ability to opt in to...