In this issue, we review priorities for institutional investors in all asset sectors, looking at the hedge fund industry and also exploring recent developments in the eurozone and in China.
Our feature article in 'Views' summarises which markets HSBC expects to grow the fastest over the next four decades and where hedge fund managers can find end-to-end providers of prime brokerage services to deliver access to those markets, while maximising asset security and taking advantage of flexible financing.
Hedge funds, hedge fund managers and asset servicers are becoming increasingly regulated. In Europe, the Alternative Investment Fund Managers Directive (AIFMD) will impose strict requirements when it comes into force next year. Although the industry accepts the need for new regulation, many are less than happy with some of the detail in the latest draft and are lobbying for changes – as we explain in our 'Regulatory focus' article.
One of the biggest concerns is how the AIFMD defines the roles and responsibilities of depositaries, in particular the fact that depositaries could be held liable for the loss of financial instruments kept by sub-custodians. Bill Scrimgeour, Global Head of Regulatory and Industry Affairs at HSBC Securities Services (HSS), an expert on the directive and its intended and unintended impacts, will be hosting a webinar on the topic in June. We shall send invitations shortly and hope that many of you can join us.
Also in this issue, John Van Verre, Head of Global Custody for HSS, shares his thoughts on the changing landscape for institutional investors in all asset classes and geographical markets. Achieving a return on assets is only half the story for investors – the other half is being able to sleep easily at night knowing those assets are in safe custody.
Finally, we would like to thank you for the high level of readership of our last newsletter. Recognising communication is a two-way medium, please do
e-mail or call us with your views. As always, we welcome and look forward to your feedback.
Co-Heads, HSBC Securities Services
if they come into effect in their current form.
Hedge fund industry questions AIFMD rules
Save the date - 15 June 2012
Global Head of Regulatory and Industry Affairs
HSBC Securities Services
The draft rules on the AIFMD by the European Commission (EC) could have a number of consequences, especially for depositaries, if they come into effect in their current form.
Bill Scrimgeour, Global Head of Regulatory and Industry Affairs, will host a webinar to discuss the issues and uncertainty surrounding the EC's latest release of the draft AIFMD 'level 2 implementing' rules.
Learn how the role of the depositary will affect your business and why they have the potential to become the new fund police. What will it cost?
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