MEP says hedgie directive will block funding for start-up firms
EU plans to tighten regulation of hedge funds and private equity firms will starve Google and Amazon-style start-ups of funding, a Conservative MEP has warned.
Syed Kamall said proposals to restrict European investors from putting money into Asian or American funds under the Alternative Investment Fund Managers directive could result in retaliatory measures, where overseas funds cut back on investment in European companies. Reducing the flow of European money to venture capitalists around the world would also mean they had less financial firepower to invest back in countries such as the UK or France.
Kamall added: “Imposing onerous rules will mean start-up companies, such as garage technology firms, will face major funding difficulties.”