EU Rolls Brexit Tanks Onto U.K. Hedge Fund Lawn
Britain’s fund-management industry remains vulnerable to shifts in the country’s regulatory relationship with the bloc.
Not on my lawn.
Source: Bloomberg
As negotiations about the terms of the U.K.’s departure from the European Union rumble on interminably, it’s pretty clear that the future relationship will be fractious at best. For the asset management industry, the fight around cross-border arrangements for overseeing investments is reigniting, with London’s hedge funds stuck in the crosshairs.
The shoe is pinching around so-called delegation rights, the rules that allow funds to be marketed and sold in one country and managed from another. Depending on how cynical you’re feeling, the EU is either concerned that post-Brexit Britain will leave savers exposed to a laxer regulatory regime, or it sees a one-time opportunity to attract a chunk of the lucrative asset-management industry away from London.