(Reuters) – Asset managers from two of the world’s top hedge fund centers, the United States and Cayman Islands, must wait another five months to find out if they can continue marketing themselves to European Union investors, prolonging uncertainty in the sector.A new EU law requires the bloc’s European Securities and Markets Authority (ESMA) to say for the first time whether hedge fund and private equity rules in non-EU countries are as strict as those in the 28-country bloc.
The European Commission takes the final decision on whether a passport is granted in a lengthy process that has created uncertainty in the sector. In July, ESMA said it could not at the time give a view on the United States, one of the world’s biggest hedge fund centres, as it had concerns over competition – triggering speculation that no passport will be granted any time soon.
