German law worries hedge funds

Germany’s fourth Financial Market Promotion Act, which was drafted in January and is set to become law in June or July, contains a clause banning short selling during periods of extreme market volatility. This clause is worrying German hedge fund associations that believe German law is already far behind its European counterparts when it comes to hedge fund regulation.

Germany has no specific regulations dealing with hedge funds. Most funds are classified as being offshore, and are regulated

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