Let us know about free updates
Simply sign up for UK financial regulations Myft Digest and it will be delivered directly to your inbox.
Hedge funds are looking to take advantage of Brexit and take advantage of the global deregulation drive by removing sector reporting requirements to UK financial watchdogs.
Under rules inherited from the EU, the UK Financial Conduct Authority requires that market transactions be reported by both buy-side institutions, including hedge funds, and sell-side institutions such as investment banks.
Hedge funds make the most of this is a duplicate of unnecessary efforts and by lobbying the FCA and abandoning the buy-side agency requirements to report transactions, It’s there.
The sector believes political winds have moved favorably as the UK government presses regulators to cut deficits to support the country’s stagnant economy.
Donald Trump’s push for a wave of deregulation in the United States provides an extra push to call for a reduced bureaucratic burden on the city of London.
“Reducing manager redundant and costly requirements while maintaining regulatory oversight will improve the appeal of the UK’s global financial services centre,” he said, representing many of the largest hedge funds in the US. said Brian Corbett, CEO of the Association of Managed Funds.
The MFA said, “It encourages the FCA to remove buy-side companies from the scope of transaction reports, as dual-side reports are duplicated, costly and inefficient.”
The FCA hoped the sector would likely cut reporting rules when it published its discussion paper in November, saying it would “achiev in a streamlined transaction reporting system tailored to the UK and reduce costs for businesses.” , said it aims to earn capital. A more attractive market.”
Watchdog receives over 700 million reports annually of transactions carried out in the UK financial markets with more than 200,000 different reportable equipment, including stocks, futures, total return swaps, and exchange trade funds.
The costs of UK financial companies reporting such transactions are estimated to be over £500 million a year, according to a letter sent to the FCA by AIMA, a London-based hedge fund trade agency.
AIMA Managing Director Adam Jacobs-Dean said that members “routinely reporting transaction as one of the most important compliance burdens as one of the burdens of a single transaction.”
“We are adamant to remove ‘buyside’ investment companies from the scope of our transaction reporting requirements. . . Mostly based on the sell-side companies that these companies carry out the transaction, too,” he said.
Such a move “doesn’t reduce the quality of information available to the FCA or reduce the FCA’s surveillance and surveillance capabilities,” he said, adding that the UK is on the line with the US. Report a transaction.
Jacobs Dean also opposes the FCA’s proposal that reporting requirements can be extended beyond companies covered by the so-called MIFID II rules by applying them to private equity and other investment companies in accordance with the rules known as AIFMD and UCITS. I did.
In a letter to the Prime Minister last month, the FCA wrote in a letter to the Prime Minister last month in response to Keir Starmer asking for a growth promotion proposal, “considering the proportionality of reporting requirements and initially profiting 16,000 companies.” It is expected to bring about it.”
A regulator, which is set to publish proposals to change reporting rules later this year, told the Financial Times:
