EU delays controversial vote on hedge fund reforms

European finance ministers have delayed a vote on controversial new regulations on hedge funds and private equity investments after failing to reach an agreement on proposed reforms.

Widely condemned by the UK and US, the issue was taken off Tuesday's agenda in Brussels and is expected to be delayed for a number of weeks. The Alternative Investment Fund Managers Directive would force funds based outside the EU to comply with restrictions on bonuses and leverage, should they want to be sold to investors in the union. Britain has about 80% of Europe's hedge funds, 60% of its private equity firms and is also the key destination for non-EU funds looking to market in Europe. Chancellor Alistair Darling is pleased with today's outcome. "We now have an opportunity to...