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Line revolves around to grant a licence "Passport" who want to work in all 27 EU Member States or foreign funds.

France wants stricter rules for foreign fund managers while United Kingdom - based European hedge funds - 80pc wishes to allow same rights as their national counterparts.

Jean-Paul Gauzès, parliamentary law, rapporteur said in a statement, the postponement is due to "the absence of an agreement", the Committee permanents.En consequence, Parliament representatives has developed out of a vote on the project until November, with no other talks three channels provided with the European Council and the Commission to the Member States have merged.

Christine Lagarde, the French Finance Minister and Chancellor George Osborne should speak in the coming days in a final attempt to reach an agreement on controls for hedge funds and private equity firms before a meeting of Finance Ministers at the beginning of next week.

The Belgian Presidency of the Council this week released another draft compromise directive, further refining its previous proposals for a Passport on the market of third-party investors EU funds.

The United Kingdom - along with the Sweden, the Netherlands and Czech Republic - is reluctant to subscribe to this latest version.

Belgium also proposed to give new powers to the European Securities and markets, a new EU guard dog that Paris wants to resume execution of the Passport program as opposed to France authority.

The controversial law resulted in heartbreak, since it was first proposed in April 2009.Il also influenced Washington, who felt that French plans are protectionnistes.U.S.The Secretary of the Treasury Timothy Geithner wrote to Ms LaGarde warning against trying to control the operations of international hedge funds.

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Christine Lagarde, the Minister of French finance, wrote to Treasury Secretary Timothy Geithner on the revision of European proposals that would have strict controls placed on hedge funds in the block of 27 members, in the wake of the financial crisis.

In the letter, she has pushed back the French critical U.S. demands for new EU rules have been protectionist and penalised for foreign funds operating in Europe.Toutefois, a change in policy Ms. Lagarde said foreign funds are now allowed for a pan-European licence if the schema has been progressively and new licences have been issued by a new EU regulatory agency.

Development represents a change in policy for Paris.Mme LaGarde already argued that issue a foreign funds EU licence would an error because the controls on these operators were unlikely to be quite difficult.This has led to a rear response from Mr Geithner last week, warning against placing restrictions on foreign funds.

According to the proposals, the new European watchdog would have the power to request information on how the funds invest, and borrow money from it may also intervene in limiting the trade, including a ban on selling short.

The Bill would also impose a code of loose payroll on the hedge fund managers requiring them to stagger gains over several years to reduce the incentive for operators to take large one-time additional risks.

Governments and regulators across Europe remain divided on the issue, with many supporting the existing system, requires funds to apply for permission to sell to investors on a country by country basis.

It remains uncertain whether Britain would accept this system, which would give a EU watchdog more power the weakening of the importance of London is the capital of Europe for the block of the police, hedge funds hedge funds.

The France was sensitive to criticism of Mr. Geithner so close to his chairmanship of the Group of 20 diplomats pays.Les and legislators are now hoping to negotiate an agreement on the regulation of hedge funds in time for vote to the European Parliament, following which is due to give its seal of approval on the law of this month.

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