Europe’s clampdown on fund outsourcing chills market

Esma proposals spark worries AIFMD review could wreck existing delegation models

The fund management business in the European Union is a $20 trillion industry. Experts fear, though, that proposed rules for fund outsourcing could cause this figure to shrink.

The European Securities and Markets Authority has set out its wish list for an upcoming review of a key piece of investment legislation. In essence, Esma wishes to clamp down on the practice of European fund managers delegating business to firms in other countries.

The suspicion is that the review is aimed at forcing UK