AMWatch

EU seeks tighter asset-manager rules with Brexit date looming

As Brexit trade talks approach their deadline, the European Union’s top markets regulator called for rule changes that could limit firms’ ability to manage money in the bloc from London.

Photo: Peter Hove Olesen

EU-based funds routinely delegate portfolio management to their own teams in London, New York and other places outside the bloc, or outsource it to other companies. The European Securities and Markets Authority said this practice increases risk, and “is likely going to further increase” once the U.K. leaves the EU. It recommended limiting delegation and holding fund managers to EU standards regardless of where they’re located.

The regulator also called for a tightening of the rules on the use of so-called seconded staff temporarily assigned to a firm in the EU, but who in some cases continue to work outside the bloc. ESMA’s proposals are part of a review of EU rules for so-called alternative investment funds, a category that includes private equity, real estate and hedge funds.

Read the whole article

Get 14 days free access.
No credit card required.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from AMWatch

Further reading

Latest news

Jobs

Latest news from FinansWatch (dk)

Latest news from EnergyWatch

Latest news from ShippingWatch