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New regulatory emphasis on alternative funds

 April 2009 - A draft of a proposed European Union directive seen by the Financial Times makes clear that the new regulatory emphasis for alternative funds will be on managers, rather than funds directly.  Sweeping new rules would require all hedge funds and private equity managers in Europe to detail their activities to financial regulators and meet minimum capital requirements. The new rules, the first of their kind, are being drawn up following heavy pressure from world leaders most recently at the G20 meeting in London. 

While the full impact on art investment funds is yet to be determined, the private equity industry has spoken out against the proposals as "illogical and disproportionate" arguing that in sharp contrast with the hedge fund industry, private equity does not represent any systemic risk.