Securities, Commodities, and Exchanges/International Law: European Parliament Approves Hedge Funds Directive

On November 11, the European Parliament, at a plenary session, announced that it had adopted a directive to impose European Union-wide rules on registration, reporting, and initial capital requirements on marketing of alternative investment funds such as hedge funds and private equity funds. The EP, which approved the directive by a vote of 513-92 with 3 abstentions, also announced that it "successfully pushed for strict liability of depositaries, who are key players in the running of these funds, to ensure that damages can always be claimed by the investors."