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

European Union rules aimed at custodians servicing hedge funds are being discussed. Controversy centres on custodial liability for fund assets. Dealing with regulation is an issue.

custody-lights

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

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