But the Alternative Investment Management Association and the Managed Funds Association have now revealed what they want following the Leave vote.
In a report due to be released later this week, UK-based Aima and the US-based MFA will ask that hedge funds continue to have access to European workers and investors, and also call for laws to help the setting up of new UK funds.
Jack Inglis, CEO of Aima, said: “We urge government to be wary and not burden businesses further with a third set of rules when agreeing a transition deal. The most sensible option in our view therefore would be to continue the status quo until a new UK/EU deal can be struck.”
Here are Aima and the MFA’s main Brexit demands, according to a spokesman for Aima.
Access to European workers
Around one fifth of employees in the UK’s hedge fund industry are comprised of non-UK European nationals, according to a survey by the trade bodies. As a result, the trade bodies want the UK hedge fund industry to continue to be able to access skilled workers from the EU and beyond following Brexit.
Ability to raise money from European investors
Around a quarter of the money managed by UK hedge funds comes from European investors, according to the trade bodies, so they want hedge funds to continue to be able to access these investors and provide investment management services into the EU after Brexit.
The delegation model, where UK firms are able to manage EU-domiciled funds or accounts such as UCITs, should continue. The UK should seek to be deemed “equivalent” under the Alternative Investment Fund Managers Directive, which may then allow the UK to access a “third country passport” that would mean hedge funds would be able to raise money relatively easily from European investors.
Create new UK rules for hedge funds
The UK should look at creating a new set of funds and securitisation vehicles that would allow hedge funds and private debt funds to be domiciled in the UK.
Ahead of the June 23 referendum, hedge fund managers were divided on Brexit, with well-known names taking opposing sides. David Harding and Ian Wace were among the well-known names who called for the UK to remain in the EU, while Crispin Odey and Paul Marshall were among the prominent Leave backers.