In view of the potential review of the UCITS directives, it is also important to note that the EP initiative report on the future of hedge funds and derivatives adopted in 2004 stresses the need to introduce legislation in order to make lending by EU financial institutions to offshore hedge funds more transparent, as well as the need to develop a light handed and appropriate EU-wide regulatory regime for hedge funds in order to attract them to the EU and provide benefits of a common European passport through mutual recognition.
In view of the potential review of the UCITS directives, it is also important to note that the EP initiative report on the future of hedge funds and derivatives adopted in 2004 stresses the need to introduce legislation in order to make lending by EU financial institutions to offshore hedge funds more transparent, as well as the need to develop a light handed and appropriate EU-wide regulatory regime for hedge funds in order to attract them to the EU and provide benefits of a common European passport through mutual recognition.