EU seeks more powers over hedge funds after Brexit

Article source
Financial Times

The EU wants to give its main markets regulator tougher powers to police hedge funds and asset managers to stop them gaming the bloc’s rules after Brexit.

Brussels is concerned that some UK fund managers may abuse rules by setting up shop within the EU while continuing to “delegate” large amounts of business to British subsidiaries.

EU law sets tight limits on fund managers’ delegation of activities to subsidiaries or other units outside the bloc. The rules say it should be for clear business reasons and not undermine the effectiveness of supervision by national regulators.

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