Jouyet deplores the U.S. approach on hedge funds
The European Union has no lesson to receive from protectionism in the United States on the regulation of hedge funds and proposals for cooperation from U.S. authorities on this matter are not acceptable, said Friday Jean-Pierre Jouyet.
In an interview with Reuters, the chairman of the Financial Markets Authority (AMF) also highlighted that the opacity has not declined in recent months and that Europe must address this problem if it does not become dependent on the United States in the matter.
"Americans are willing to cooperate with Europe on the issue of hedge funds since there will be a test or investigation. This is tantamount to limit cooperation between Europe and the United States only to event of breach of rules.It is not enough, "he says.
"There would be no overall supervision agreement between the SEC (U.S. Securities and Exchange Commission) and the new European supervisory authority.The U.S. proposal is not acceptable, "he flies into a rage.
The EU is torn over a year on the directive ISA (Alternative Investment Fund Managers), which aims to regulate the activities of managers of hedge funds and private equity groups in Europe.
Negotiations break down in particular on the question of whether to allow the managers based in third countries to sell their funds via a "European passport" in exchange for registration and more transparent.
The U.S. treasury secretary, Timothy Geithner, was terminated in early April the protectionist nature of regulation envisaged by the EU.
For their part, the Americans are considering similar legislation for the "hedge funds" outsiders, they intend to submit a registration, reporting and tax obligations.
"They therefore exert a monitoring on all the European funds of this type. And we cede to charges of protectionism while on these subjects here, most protectionist measures are taken to the United States.Europe has no lesson to receive from the Secretary of the Treasury in terms of U.S. protectionism, "said former Secretary of State for European Affairs.
RISK OF DEPENDENCE
Jean-Pierre Jouyet further considers that the opacity in financial markets has declined since no one and that Europe must act to avoid dependence on the future of the United States, working to reduce .
"There is no slowdown in the opacity and fragmentation of markets," he said.
"We are no longer able to monitor than half of the transactions," he adds.The other half takes place on unregulated markets, OTC or as big as 'dark pools', European authorized by the Markets in Financial Instruments Directive of 2007.
"That is why the issue of compensation and organization of markets is central.I see that our American friends the deal, probably more quickly and more efficiently than us, "he adds.
He advocates a revision of MiFID, to make up the United States for transparency and market organization.
"It was shot in the foot by the Americans themselves who have noted the issue and are taking back the things in terms of transparency, market organization, etc.." He said.
"The choice is simple: either we reform quickly and deeply this directive is you will end up with a new dependence on the U.S. because we need to adopt their system of organization, compensation, infrastructure since they treat the subject more quickly than us. ".
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