UK hedge funds look to European watchdog to ease Brexit fears

London

The future of London as the hedge-fund capital of Europe, along with the £700 billion (S$1.23 trillion) of assets money managers control, may be determined by a market watchdog this month.

The Paris-based European Securities and Markets Authority (ESMA) will recommend this month whether hedge funds, private equity and real-estate funds based in some countries outside of the European Union (EU) should be able to continue selling products within the 28-nation bloc. The opinion will be closely scrutinised by London-based fund managers because it could become a template for when Britain exits the EU.