ninemsn – The European Union’s attempt to regulate hedge funds will affect other classes of alternative investment such as real estate funds and investment trusts, lawyers studying the fine print of the new rules have warned.
They could also lead many offshore hedge funds to relocate to the EU by raising the compliance costs for managers selling into Europe.
The benefits of operating from places such as the Cayman Islands will be eroded by forcing fund managers selling to the EU to operate under EU rules, lawyers say.
