The EU commission considers limiting hedge funds post-Brexit

In a new hearing round, the EU commission considers limiting the capacity of UK-based hedge funds to manoeuvre within the EU.

City of London (image) might become a competitor to the EU financial industry in 2021. | Photo: Ben Stansall/AFP/Ritzau Scanpix

The EU Commission is currently examining the possibility of limiting British hedge funds, for when the UK finally leaves the EU towards the end of the year, according to the Financial Times.

Last week, the commission made a hearing round public, during which many of the questions referred to whether hedge funds could be constricted. Typically, the main headquarters of the funds would be somewhere in the EU, and they would sell their funds from this location, while the investment decisions would be relegated to an alternate financial center – such as the City of London.

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