I'm attending The Hedge Fund Business Forum at the Institute of Directors where Michelle Kirschner spoke this morning on a panel about current legal and regulatory developments, including Brexit issues. The other panellists were Angus Milne of TCI, Ben Singh of Lansdowne and Kate Squire of Man Group, and the panel was moderated by Max Rijkenberg of PAAMCO.
Michelle was asked how our clients are approaching Brexit planning, and responded that approaches vary from manager to manager and are very much dependent on individual managers' circumstances.
Unsurprisingly, as representatives of large institutional hedge fund managers, the other panellists expressed similar views; the consensus being that there is little appetite among investment professionals to relocate from London, even where group entities already exist in EU27 countries.
There was cautious optimism among the panel that delegation of management services into the UK is likely to remain viable (given the wider consequences that would ensue from tightening the delegation rules).
None of the panellists were particularly concerned about EU marketing issues; partially due to limited capital inflows from EU27 countries, and partially as most hedge fund marketing is already under local private placement regimes, so the only switch is from Article 36 marketing to Article 42 marketing (which makes little difference provided cooperation arrangements are in place).