Sunday, 21 December 2014
Last updated 1 day ago
Dec 12 2012 | 10:20am ET
Almost half of Switzerland's hedge funds are mulling a move to Liechtenstein to avoid newly-adopted Swiss hedge fund regulations, a new survey shows.
Switzerland, long favored as a light-touch regulatory haven, has approved new rules that mirror tougher regulations adopted by the European Union. But while the EU has pledged to grant access to its markets to hedge funds from any country whose regulations pass its muster, those third-country funds might have to wait until 2015—and possibly longer—to get a so-called "passport."
Switzerland is not an EU member, nor a member of the European Economic Area. But Liechtenstein, whose 61 square miles are wedged between Switzerland and Austria, is an EEA member, and hedge funds based their will not have to wait for a passport. About 47% of Swiss fund managers are considering a move to the tiny principality, long a popular tax haven, according to a PricewaterhouseCoopers survey.
"Until now, Switzerland offered one of the most lenient private investment regimes in Europe, if not the world," PwC's Günther Dobrauz told Bloomberg News. "This is about to change."
It is unclear how many hedge funds will actually make good on the threat to move. Almost three-quarters of the 92 firms surveyed said that Switzerland is their home base due to proximity to friends and family. And while Liechstenstein is only about 50 miles or less from hedge fund centers like Zürich, Zug and Pfäffikon, it is on the opposite side of the country from Geneva, a roughly four-hour drive.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.