Banks to be prohibited from hedge fund investments

But close-ended, unleveraged or Ucits fund may provide an exception

EU flag

Under proposed European Union rules that would ban proprietary trading, banks may be barred from investing in hedge funds, leading to an increase in entry barriers to the industry, say industry experts.

The European Commission’s proposed regulation on bank structure (BSR), which first surfaced in January 2014, would prohibit a bank, and any entity belonging to its group, from engaging, through dedicated desks and personnel using the bank’s own funds or borrowed capital, in proprietary trading in

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: