EU Hedge Funds Switzerland
EU Directive Driving Hedge Funds to Switzerland
The EU fund manager directive finally passed last Thursday after lengthly negotiations and although the directive was softened from previous proposals, the effect on the UK may be severe. Switzerland has already been an attractive haven for hedge funds looking to avoid stiff taxes and desiring a more business friendly environment, with the directive's passage it seems that more hedge funds are considering the relocation to Switzerland.
The regulation, which the European Parliament passed on Thursday, could kick start Swiss efforts to lure financial professionals away from Britain, currently home to 75 percent of European hedge fund assets, with the promise of lower taxes.
"This will certainly have an impact on the larger fund managers with big risk and portfolio management departments," said Marcel Jouault, who represents the financial industry in Pfaeffikon, a town near Zurich.
Earlier this year, industry professionals and consultants said uncertainty over the pending regulation was a major factor causing London's wealthy hedge fund managers to stay put despite stiff tax increases for top British earners. Source
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