EU fund directive slammed

A report for the European Parliament attacked a proposed EU directive to regulate hedge funds as "poorly constructed, ill-focused and premature", in a blow for lawmakers who have demanded tough rules for the sector. The impact assessment by Europe Economics said there was a "strong case" for additional regulation but said "the rationale for a directive of this form is weak". The report was commissioned by the European Parliament's Committee on Economic and Monetary Affairs. The report is a setback for supporters of the directive, which has come in for heavy criticism by the hedge fund industry.