BRUSSELS—Members of the European Union remain divided over planned rules for hedge funds and private-equity firms, according to the Spanish government.
Spain, which currently holds the EU's six-month rotating presidency, said representatives from the bloc's 27 member countries raised three main concerns at a meeting last week: the scope of the regulation, the use of depositaries and rules for funds based outside the EU.
These concerns highlight the bloc's deep ideological divisions about regulating financial markets in the wake of the economic downturn. Officials in Germany, France and Italy are staunch critics of hedge funds and other aspects of financial markets that they say have evolved beyond regulators' understanding and oversight. Read more
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