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The Hedge Funds seek to take advantage of Brexit and exploit a global deregulation campaign by calling the British financial guard dog to withdraw the requirements of reports for the sector.
Under the rules inherited from the EU, the British Financial Conduct Authority requires that market transactions be declared both by purchasing institutions, including hedge funds and institutions on the sale, such as banks ‘investment.
The hedge funds complain that it is an unnecessary duplication of effort and put pressure on the FCA to get the most out of not need to respect the EU rules by abandoning the requirement For purchasing institutions to report transactions.
The sector believes that political winds have evolved in its favor while the British government is pressure on regulators to reduce administrative formalities in support of the country’s stagnant economy.
Donald Trump’s push for a wave of deregulation in the United States gives additional momentum to the calls for a reduction in the bureaucratic burden of the city of London.
“The reduction of redundant and costly requirements on managers while preserving regulatory surveillance will strengthen the attractiveness of the United Kingdom as a global financial service center,” said Bryan Corbett, Managing Director of Manage Fund Association, which represents Many of the greatest American hedge funds.
The MFA said that it “urges the FCA to withdraw the purchasing companies from the extent of transaction reports, because double -sided reports are in double, expensive and ineffective”.
The FCA gave the sector hope that it was likely to reduce report rules when it published a discussion document in November, claiming that it was aimed at reaching “a rationalized transactions report, adapted to United Kingdom, to reduce costs for businesses and make our capital market capital. ”
The guard dog receives more than 7 billion reports each year of transactions carried out on the British financial markets for more than 20 million instruments to declare different, such as actions, term contracts, total return exchanges and Stock market negotiated funds.
The cost of British financial companies in reporting of these transactions is estimated at more than 500 million pounds sterling per year, according to a letter sent to the FCA on Friday by Aima, an organization for a hedge commerce based in London.
Adam Jacobs-Dean, CEO of AIMA, said that its members “regularly making a single report on transactions being one of the most important compliance burdens”.
“We strongly defend the abolition of“ purchase ”investment companies to the extent of transactions declaration requirements. . . Based on the sales companies with which these companies run transactions in most cases, also reports these transactions, “he said.
Such a decision “would not reduce the quality of information available to the FCA or decrease the FCA surveillance and surveillance capacities,” he said, adding that he would put the United Kingdom as a function of the United States, which does not require purchasing companies to report transactions.
Jacobs-Dean has also rejected the suggestion of the FCA according to which it could extend the declaration requirements beyond the companies subject to the so-called Mifid II rules, by applying them to equity and other investment companies subject to the rules known as AIFMD and UCITS.
In response to Sir Keir Starmer’s call to pro-growth proposals, the FCA declared in a letter to the Prime Minister last month that it “would examine the proportionality of declaration requirements and delete redundant yields, which should initially benefit 16,000 companies “.
The regulator, which plans to publish proposals to modify its report rules later this year, told Financial Times: “We are committed to deleting unnecessary declaration requirements to support growth, as we have sent to our letter to the Prime Minister. ”
