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: Brevan Howard’s Charlotte Valeur Talks Strategy

Sep 18 2014 | 11:18am ET

Charlotte Valeur chairs the board of Brevan Howard Credit Catalysts, an LSE listed...

Lifestyle

Griffin Donates $1M To Rauner's Illinois Gov. Campaign

Sep 22 2014 | 9:29am ET

Hedge fund billionaire Kenneth Griffin definitely has a dog in this fight. The Citadel...

Guest Contributor

Top 5 Predicted Outcomes Of CalPERS' Hedge Fund Divestment

Sep 22 2014 | 8:35am ET

CalPERS’ announcement to divest of hedge funds has created a significant buzz...

 

Videos

Editor's Note

    Get A Sneak Peak Of The Alpha Pages

    Aug 25 2014 | 11:21am ET

    As many of you know, FINalternatives was recently acquired by the owners of Futures magazine, a firm called The Alpha Pages LLC. Today marks the soft-launch of a new sister site for both publications. As its name suggests, The Alpha Pages will cover all types of alternative investments, going far beyond the more well-known ones such as hedge funds and private equity. Read more…

 

Futures Magazine

September 2014 Cover

The London Whale: Rogue risk management

Credit default swaps brought down the London Whale and cost JPMorgan $6.2 billion. Here is how it happened.

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.