Ex-James Caird COO Readies Independent Depository

Jun 24 2013 | 10:27am ET

James Caird Asset Management's former operations chief aims to profit from the European Union's looming new hedge fund regulations by setting up the continent's first independent hedge fund depository.

Bill Prew is seeking the approval of the U.K. Financial Conduct Authority for his Indos Financial. The firm will focus on small- and mid-sized hedge funds, allowing them to come into compliance with the Alternative Investment Fund Managers Directive, which will require offshore hedge funds that are marketed to European investors to appoint a third-party depository.

AIFMD will come into force across the EU on July 22.

"Unlike other depository businesses today, we will work with most leading fund administrators and perform 100% arms-length oversight," Prew told Financial News.

"There is an inherent conflict of interest in the established trustee model, where large banks provide depository services to an affiliated custodian or administrator," he added. "Post AIFMD, we expect the banks will focus on bigger hedge fund clients because capacity is limited, trustee fees are low and the potential revenue relative to the perceived risk is not significant."

That is where Indos' focus on smaller funds comes in. "They will find it difficult to appoint a provider, more so if they use an independent administrator, and will welcome an independent, flexible depository solution," Prew said.

Prew was chief operating officer at James Caird, and formerly served as European CFO at Barclays Global Investors.


In Depth

Q&A: Jeff Eaton Talks Capital Raising, CalPERS And The Secondaries Market

Oct 14 2014 | 10:16am ET

Global placement agent Eaton Partners has raised close to $60 billion for some of...

Lifestyle

MacDonald-Korth Offers Insights Into Paintings Bought, Sold By Hedgies

Oct 7 2014 | 9:00am ET

Definitive and complete ratings require an in-person examination of an artwork,...

Guest Contributor

PAAMCO: European Equity Exposure - Challenging Year, But All is Not Lost

Oct 16 2014 | 4:12am ET

European equity hedge fund managers have had a tough time so far this year. The...

 

Videos

Editor's Note

    Must Attend Hedge Fund Charity Events For October

    Sep 30 2014 | 9:29am ET

    The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.