Investors Warn Barnier Over New Financial Regulations

July 12, 2012 James Heinsman Hedge Fund News

Michel Barnier

Twenty leading fund management firms are warning the commissioner in charge of European financial regulation Michel Barnier that new regulations designed to limit certain hedge fund practices could harm the financial sector’s ability to function efficiently.

Some of the firms which joined in the letter that was sent to Barnier include Allianz, BlackRock, Fidelity and Schroders. The letter focuses on the commissioner’s new rules which will help to better govern alternative investment funds by blocking the use of “letter box entities” which allow firms to register in one place, but operate in another.

The fund managers insist in their letter that their ability to have an asset manager based in one country utilizing the on-site services of people based in another will harm their decision making prowess if they can’t have management teams that are locally based.

"We are extremely concerned that the forthcoming 'Level 2' implementing measures for the Alternative Investment Fund Managers Directive will undermine the single market," the letter sent by the fund managers states.

Allianz, BlackRock, Fidelity, Michel Barnier, Schroders,

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