Prime brokers to escape AIFMD segregation burden, sources say

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Prime brokers are said to be close to victory in their spat with depositories over a requirement in the Alternative Investment Fund Managers Directive (AIFMD) that they should segregate assets posted as collateral by hedge funds and held on their behalf. No guidance has yet been provided in writing, but five industry sources say regulators have agreed a compromise that would allow prime brokers to increase their reporting, while leaving current segregation practices unchanged.

"This would be wel