"There should be a regulation on managers as the directive foresees, but also we have to guarantee transparency and see what happens within the funds themselves," Gauzès, from the centre-right European People's Party, told EurActiv.
"I think we should go further," he said, adding that the funds themselves should be regulated as well as the managers. "We cannot forget the risks we have seen during the crisis. Hedge funds are not the origins of the crisis, but they present risks," he made clear.
Gauzès was appointed on Wednesday (2 September) as rapporteur for the controversial directive on alternative investment funds. His appointment comes after he had successfully dealt with the credit rating agencies dossier, adopted by the European Parliament in record time amid the financial crisis (EurActiv 03/09/09).
He will be supported by an unusual informal working group designed to address "nuances" within the EPP itself on how to review the draft directive.
Hedge fund managers have openly criticised the directive, saying it could have a negative impact on the entire financial sector and cost the pension fund industry €25 billion every year (EurActiv 24/04/09).
AIMA, which represents hedge fund managers, "is campaigning for the draft directive in its current form to be substantially revised," the association repeated yesterday (3 September) in a statement.
"AIMA has argued that there are elements of the directive, such as those relating to leverage, depositaries and marketing, which have been poorly drafted and which will have many unintended and potentially damaging consequences," the text concluded.
Gauzès also openly criticised US pressure over the EU directive. "I had the impression we were quite distant regarding the future of financial services," he commented when asked about a meeting he held on Wednesday with a delegation of US Congressmen.
As for private equity, Gauzès supports the idea of dealing with that part of the investment fund industry in a specific manner. "I think we have to look at specifics and avoid regulation that concerns everybody and nobody at the same time," he told EurActiv.
He promised a draft text by November, but called for patience regarding the final document. "It's not realistic to think its adoption will happen before December," he said.
Jean-Paul Gauzès was speaking to Francesco Guarascio.
