Compliance
Compliance Corner - Brevan Howard, Tudor Investment
A round-up of the latest compliance issues across the world.
Brevan Howard & Tudor Investments
Global hedge fund firms Brevan Howard and
UK arm of Tudor
Investment have dropped their MIFID licences according
to the Financial Times. The move will enable investment
manager to avoid the new strict rules which will come into place
in January 2018.
Firms are preparing for the arrival of Europe’s MIFID II
directive, which will force fund managers, banks and brokerages
to change their business models and hand over huge amounts of
data to regulators.
The fears of hedge fund managers over MIFID II stem from the
fact that the new rules will involve sending lengthy reports to
regulators within minutes of a trade taking place. The increase
in transparency could scare off potential investors into the
sector.
According to the FT, the two hedge fund companies have
instead secured Alternative Investment Fund Manager licences,
which have enabled asset management companies to market hedge
funds to investors across Europe since 2013.
The licences also have similar features of MIFID, including tough
restrictions on pay for fund managers, however some firms view
these as less challenging than the MIFID II rules.
Spokespeople from both Brevan Howard and Tudor
Investment have declined to comment.
