U.K. Hedge-Fund Brexit Concerns Eased by EU Access Opinion
- ESMA supports passports for Canada, Jersey, Switzerland funds
- Backing is ‘probably positive’ for U.K. funds facing EU exit
There are “no significant obstacles” preventing hedge funds and private equity firms based in Canada, Guernsey (pictured) Japan, Jersey and Switzerland gaining so-called passports.
Source: Getty ImagesA European Union regulatory opinion may ease concerns about whether a U.K. exit from the trade bloc will hinder market access for the nation’s $922 billion alternative investment industry.
Hedge funds and private equity firms based in some overseas markets should be allowed to operate across the EU using a single so-called passport that will be introduced under a directive coming into force in 2018, the European Securities and Markets Authority said in a statement. The guidance may give encouragement about post-Brexit access for funds in the U.K., which oversee about 85 percent of Europe’s hedge-fund assets, based on estimates from industry group TheCityUK.