Bloomberg reports that as many as 40 percent of the world�??s hedge funds won�??t have access to European Union investors if EU plans to oversee funds and private equity are passed in their current form, citing an official at Britain�??s regulator.

Investors from the 27 member-state bloc won�??t be able to access 40 percent of hedge funds and 35 percent of private equity firms under EU proposals because of so-called equivalence requirements, a Financial Services Authority official said, citing a report. The requirements test whether countries where funds are based have similar tax and legislation to the EU.