EU Delays Vote on Offshore Hedge Fund Rules

On Monday, European Lawmakers chose to delay voting on new hedge fund rules that would prevent investors from investing with offshore hedge funds in tax havens. The vote will now be held May 17, 2010

Last year, The Group of 20 Nations developed the Alternative Investment Fund Managers Directive which forces hedge funds outside of the EU to comply with certain guidelines before gaining access to European investors.

According to Clifford Chance LLP's Simon Gleeson, the new rules could force hedge funds out of the UK and "to the U.S., although some to Switzerland and a few to real offshore centers."