Brexit Good For Spite, Little Else

UK hedge funds will still have to abide by EU rules.
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Still has to follow the law.

Ask some British hedge fund managers and a June vote to leave the EU will transform the U.K. in a light-touch regulatory wonderland where they’ll never be unfairly trod upon by some funny-talking bureaucrat with an ax to grind ever again and will be free to make whatever trades they want and pay themselves whatever they want with reckless abandon. Which may be true, to some extent. That is, as their American and Cayman counterparts have discovered, they’re not interesting in having any European clients.

The AIFMD applies to hedge funds sold into the EU as well.

“If a manger wants to sell their alternative fund in the EU (and many do), it falls under the scope of the AIFMD,” Duffy writes.

“This means that a UK manager would need to register as a non-EU AIFM and be subject to the AIFMD rules.”

Oh yea, and one other thing: A Brexit doesn’t mean all of those laws Parliament’s passed at Brussels’ behest over the last 40 years just go away.

There’s another problem too. Like all EU directives, the AIFMD is enshrined in UK law and a vote to leave the EU doesn’t automatically mean that all EU regulation disappears from the local statute book….

“I don’t know about you, but I’m not sold that lightening the regulatory burden for hedge fund managers is high on the list of most politicians,” Duffy concludes.

Brexit wouldn’t save UK hedge funds from EU rules: BBH [News.Markets]

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