FEPS answer to Commissioner McCreevy’s consultation on hedge funds

When the G-20 is calling to “ensure that all financial market products and participants are […]

When the G-20 is calling to “ensure that all financial market products and participants are regulated or subject to oversight, as appropriate to their circumstances”, one has to wonder why such regulation would be needed. Without doubt, financial stability is essential for a smooth growth in wealth creation. Financial markets are a tool, and not an end in themselves, “supposed to perform certain vital functions which enable the real economy to be more productive”

However, when calling for more transparency, accountability, simplicity and disclosure, as often suggested, one has to wonder in what sense such information can be a source of financial stability. In fact, economic theory is divided on this point. Regulation can have a double meaning referring to different visions of the economic system. Therefore the question of regulation has to be analysed with regard to the economic debates which have been running for nearly 300 years now. Actually the question underlying the different types of regulation can be summarised in the following way: “Are variations in the relative price system the only source of information necessary in order to achieve financial stability?”

From the answer to this question one will be able to differentiate the different kinds of regulation principles needed and the institutions in charge of such an oversight. It will be possible to notice that some regulatory principles proposed could damage the European integration process whereas it seems that the present financial turmoil would call for a more integrated, global European regulation.

Read the contribution elaborated in the frame of FEPS expert group on hedge funds

Find all related publications

Sustainable Digital Market Design: A data-based approach to the circular economy

Markets must be designed properly to serve the common good. This is particularly evident in […]

Talking Green in Europe

Lessons on re-framing the public debate on the climate crisis

Just Transition & Revitalisation – A New EU Strategy for Rural Areas

How can EU actions support the revitalisation of rural areas? How can EU institutions put […]

Voting during pandemics: making democracy resilient in turbulent times

Although many volumes have already discussed several COVID-related socio-economic phenomena, relatively less attention has been […]
Find all related news

Ahead of this week’s European Council, progressive MEPs and MPs urge EU leaders to take resolute actions toward the Western Balkans

On 17 and 18 June, the ‘Friends of the Western Balkans’, the newly established network […]

First meeting of the Friends of the Western Balkans

How do we get out of the dead end in the enlargement process?

FEPS launches a new website!

After months of work, FEPS’s new website is now online!  This new website offers a […]

FEPS holds the 2022 General Assembly

This week, FEPS held the 2022 General Assembly (GA), the yearly meeting gathering all members […]
Find all related in the media
In the media

Leaders Must Choose a Just Energy Transition and a Social Europe

by Euractiv 30/05/2022

The circular economy and green jobs

by ENCOMPASS 25/05/2022

Da Prodi a Rodrigues, domani al via la ’Terza conferenza sul futuro dell’Europa’

by La Nazione 25/05/2022

Visioni e strategie per disegnare il futuro europeo 

by La Nazione 23/05/2022