https://en.wikipedia.org/wiki/Hedge_fund#Transparency_and_regulatory_considerations...

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Europe

Within the European Union (EU), hedge funds are primarily regulated through their managers.[66] In the United Kingdom, where 80% of Europe's hedge funds are based,[194] hedge fund managers are required to be authorised and regulated by the Financial Conduct Authority (FCA).[171] Each country has their own specific restrictions on hedge fund activities, including controls on use of derivatives in Portugal, and limits on leverage in France.[66]

In the EU, managers are subject to the EU's Directive on Alternative Investment Fund Managers (AIFMD). According to the EU, the aim of the directive is to provide greater monitoring and control of alternative investment funds.[195] AIFMD requires all EU hedge fund managers to register with national regulatory authorities[196] and to disclose more information, on a more frequent basis. It also directs hedge fund managers to hold larger amounts of capital. AIFMD also introduced a "passport" for hedge funds authorised in one EU country to operate throughout the EU.[88][171] The scope of AIFMD is broad and encompasses managers located within the EU as well as non-EU managers that market their funds to European investors.[88] An aspect of AIFMD which challenges established practices in the hedge funds sector is the potential restriction of remuneration through bonus deferrals and clawback provisions.[197]

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in: https://en.wikipedia.org/wiki/Hedge_fund#Transparency_and_regulatory_considerations