The European Commission will hold a hearing on potential regulation of hedge funds and private equity funds on Feb. 26-27. The results of the hearing will be integrated into a broader proposal for financial services regulation, to be published Mar. 4.

Several European leaders reached a general agreement on significant changes to their financial regulatory systems during a meeting in Berlin this weekend. According to the chair's summary of meeting, the participants agreed that "all financial markets, products and participants must be subject to appropriate oversight or regulation, without exception and regardless of their country of domicile," particularly private pools of capital such as hedge funds, which may pose a systemic risk. The participants also agreed that a crackdown on tax havens was necessary. These steps are part of the EU's preparations for the G20 summit in London this April.

Full Story: Factbox: EU Moves into Top Gear on Financial Regulation, Reuters (Feb. 23, 2009)

Full Story: European Leaders Agree on Hedge Fund Oversight, FINalternatives (Feb. 23, 2009)