Geithner wrote to the finance ministers of Britian, Germany, France and Spain, that he understood that a draft EU law "would discriminate against third country funds and fund managers by denying them the opportunity to access the EU single market via a passport."
Tim Geithner, US Treasury secretary, this week made a fresh plea to European governments not to “discriminate” against US fund managers as they negotiate new rules for the hedge fund and private equity industries.
“I understand that the draft . . . would discriminate against third country funds and fund managers by denying them the opportunity to access the European Union single market via a passport approach, which would be limited solely to EU funds and fund managers,” Mr Geithner said in an April 5 letter to Alistair Darling, chancellor, that was obtained by the Financial Times.
“It is my hope that this provision will be revised to provide non-EU funds, fund managers and global custodians the same access as their EU counterparts and promote a single market,” Mr Geithner wrote.
The letter was also sent to Wolfgang Schäuble, Christine Lagarde, and Elena Salgado, the finance ministers of Germany, France and Spain.
Mr Geithner sought to highlight the contrast between the new EU regulations being discussed and financial reform legislation that is being supported by the US administration of Barack Obama and considered by Congress.
“Our regime will treat all advisers and funds operating in the US equally regardless of their origin – domestic or non-US,” he wrote. “I hope we can work together constructively to achieve strong financial regulatory reform.”
Last month, EU finance ministers abandoned efforts to reach a compromise deal over the proposals after a last-minute intervention by Gordon Brown, the prime minister. However, the talks are expected to begin again later this year.
The alternative investment fund manager directive, the first effort at drawing up EU-wide rules for the industry, has faced sharp criticism from within the sector. The most contentious part of the directive focuses on rules for non-EU funds and managers.
© Financial Times
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