EU red tape poses 'threat' to finance jobs

JOBS in Edinburgh's financial sector face a new threat from a European Union directive being debated in Brussels.

MSPs of all parties have warned the new EU regulations – intended to clamp down on controversial hedge funds – have been drawn up in such a way that they could seriously damage Scotland's investment management industry based in the Capital.

Critics say the directive would duplicate several existing sets of regulations, restrict investment trusts from investing in Asia and effectively prevent the sector from having any new product launches or expansion.

Owen Kelly, chief executive of Scottish Financial Enterprise, which represents the industry, said that, if unamended, the directive could have a "serious negative impact" on Scotland's investment management sector.

He said: "It is not better regulation – just more, overlapping, regulation that would bring restrictions without benefits."