[ M A R K E T
AIFMD. By nullifying the pre-marketing
AIFMD exemptions, the EU is in effect
closing the door on reverse solicitation,
making it harder for managers to avoid
mandatory registration with national
competent authorities.
What about the rest?
All UK managers – irrespective of wheth-
er they sell into the EU – must adhere to
AIFMD, a requirement which has been
a source of immense irritation at firms
whose book of business resides exclusive-
ly outside of the EU. The extent to which
AIFMD will be amended or dis-applied
post-Brexit is unknown, but it is possi-
ble UK firms will still have to continue
complying with broadly similar rules even
if they do not sell into the EU. Those UK
hedge fund unperturbed by Brexit are,
however, becoming increasingly alarmed
R E V I E W
|
B R E X I T ]
at political developments elsewhere.
“The industry’s mood has changed and firms are certainly less
concerned about hard Brexit than what they once were. Instead,
firms are worried about a soft Brexit where the industry is
“Very few UK hedge fund managers solely managing non-EU
funds have been focussing on the introduction of the AIFMD
passport, so the impact of Brexit on this segment of the
industry is not going to be as serious.”
BILL PREW, FOUNDER AND CEO, INDOS FINANCIAL
forced to comply with EU regulation without having any say on
how it is framed. A number of prime brokers have also spoken
to us about some of the risks facing hedge funds based on the
contents of the current Labour Party manifesto. These policies
are sufficiently hostile to cause a lot of the industry to leave the
UK altogether irrespective of what happens with Brexit,” says
the COO.
The Hedge Fund Annual 2018
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