European-based custodians ponder impact of regulation on hedge fund clients

Indeterminate custody


Custodians are warning that the services they provide to European hedge funds still risk being curtailed if Brussels adopts inflexible proposals currently under discussion around the liability of custodians for fund assets they hold.

Consideration of regulations coming from both sides of the Atlantic is the most pressing issue for custodians and their clients.

Those offering a hybrid service called prime custody, mixing classic custodianship with limited prime broker services, are also reflecting