Spanish finance minister, Elena Salgado is set to become an important figure in business across Europe as Spain takes its turn as leader of the EU. She is said to be very strongly in favour of setting out new regulations in regard to hedge funds.
This is of interest in London which is Europe’s centre in the hedge funds world with control of in excess of 80% of the £250 billion industry across the continent. The new possible EU directive will see managers of hedge funds struggle to deal within the new regulations.
Many analysts are predicting a mass migration of hedge fund management to Switzerland which is outside of the European Union and its proposed stronger regulation. Boris Johnson Mayor of London has come out very strongly against the regulations and he managed to make some headway with Swedish officials who are the current EU presidents.
The word is that he and members of the hedge fund industry will have far less success in trying to court Elena Salgado who is said to be unchangeable in that the system needs a massive overhaul.