* Says 2-3 outstanding issues to resolve
* Watchdog deal to give impetus on hedge, private equity
By Nigel Tutt
CERNOBBIO, Italy, Sept 4 (Reuters) - The European Union could agree in the next few weeks a law to regulate hedge funds and private equity operators, blamed by some for financial excesses, an EU commissioner said on Saturday.
Michel Barnier, European Commissioner responsible for financial regulation, said the deal in recent days on a set of pan-European watchdogs showed a political willingness for further post-crisis reforms. [ID:nLDE68123K]
“We are in the last straight. The big work has been done by the European Parliament. There are two or three sensitive points including on the treatment of third countries and the passport for hedge operators,” he said.
Under the proposal, approved hedge fund operators would get “a passport” allowing them to manage funds and sell them across the EU. The same proposal includes regulation of private funds.
Previous talks between European lawmakers and country representatives on the plan collapsed in June. [ID:nLDE65N0TH]
EU member states are divided on hedge fund regulation with Germany and France wanting tougher controls than Britain.
On private equity regulation, European Parliament members are pushing for tighter rules than in draft proposals.
Barnier reiterated the Commission will propose rules on Sept. 15 to regulate derivatives, including credit default swaps, and on short-selling, but said leaked drafts could change.
The Commission wants derivative products to be standardised, transparent, transactions registered, and obligatory clearing; the second proposal will curb naked short-selling where investors do not borrow stock to short. (Writing by Nigel Tutt, editing by Mike Peacock)