Asset Managers Worry Over 'Letter Box' Hedge Fund Rule

Jul 13 2012 | 12:50pm ET

Hedge funds aren't the only asset management shops worried about the European Union's tough new alternative investment regulations.

Twenty traditional asset managers and investors are warning that the planned rules will have unintended consequences for their own businesses. The firms, which include Allianz, BlackRock, Fidelity Investments and Schroders, argue that one of the new regulations, which seeks to prevent hedge funds from registering at a "letter box" in one jurisdiction while operating from another, is too broad.

The asset managers told Michel Barnier, the European Commission's internal markets chief, that the rule could hurt their own ability to have risk and portfolio management decision-makers based in the market in which they are investing.

"We are extremely concerned that the forthcoming 'Level 2' implementing measures for the Alternative Investment Fund Managers Directive will undermine the single market," even disrupting UCITS fund management, the firms wrote.


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note