Not only is Europe’s debt problems bludgeoning the U.S. markets today, but the continent is also on the verge of dealing a huge blow to the hedge fund industry and its favorite tax havens.
Lawmakers in the European Union are close to passing legislation that would prevent European investors from putting money into a hedge fund domiciled in certain offshore tax havens. The proposal would create a “black list” of countries that would be off-limits to EU investors and the Caymans appears to be a prime candidate for the list.
As expected the hedge fund industry is outraged. By some estimates, nearly 80 percent of all U.S. funds have a registered entity in the Caymans.
“It would be pretty sensational if the Cayman Islands were on the black list, because then you would be closing the entire British hedge fund-industry,” said one hedge-fund lobbyist, who asked not to be named.
To avoid the black list, countries must have regulations against money laundering and terrorism financing, a deal to share information with EU regulators, laws ensuring access for EU-based depositories and tax agreements with EU nations based on conventions developed by the Organization for Economic Cooperation and Development.
Awww how cute, European hedge fund managers…I take euro funds as seriously as I took the Senate hearings. Come play with the big boys in NY and SF.
Anguilla > Caymans
-SAC
@1
SF? What have you been smoking? london HF industry is 100x the size of SF.
go back to sucking your BF’s dick.
@1 the only bsd’s in sf aren’t trading for a living
I don’t get it.
@5 – #4 means that all the BSDs in SF aren’t into trading because there is a big tech industry in SF, so it’s likely they are involved in some sort of technology venture.
Hope this helps, let us know if you have questions.
-AIG Human Resources / VP of West Coast talent management
Uh, we have AML policies/laws in the US yet I’m pretty damn sure plenty of it goes down regardless. Point is, like any regulation, I’m sure the lawyers are already hard at work figuring out how to subvert this.
It’s better in the Bahamas!
is that Bess on the beach? she looks good in yellow.
Yet another way in which the EU seeks to annoy the UK…
BTW, since when are the Caymans mountainous?
GO SF!
Eeh… wait, it’s called Pacha now… ;)
SF has no worthwhile hf’s since Roomy got clipped……
@6…..in the 90′s…
@3 London is only 7x bigger…..you wanker…
@7
fuck you know about london.
go back to your elephant walk
suck your public school roommate’s thang while you ice your balls…London’s assets are moving Switzerland…can u yodle?
@16 “London’s assets are moving Switzerland”?? mmmm I doubt that.
(a) I cant see how assets can physically move a country and (b) only a handfull of “meaningful” HFs have mentioned they may be committed to move to Swiss jurisdiction, and even some of those are rumours and may end up in the Channel Islands and (c) it makes no difference where a HF MANAGER is actually based… the new EU rules apply to the domicile of the FUND and its assets and NOT the trader.
The Luxembourg and Irish custody industry must be rubbing their hands in glee.
@10… its not mountains but a volcanic ash cloud…
Good spot otherwise… I’d be a giver on it being Antigua
@1 Ill rape your fat white trash american momma and make your hill billy dad watch it. And once i’m done with your mum, ill move on to your little sister
@19 youre hot….