The hedge fund industry’s pleas for the UK to
negotiate to retain passporting rights post-Brexit has been
criticised by market participants as unrealistic.
On December 19, the Alternative Investment
Management Association (AIMA), Managed Funds Association and
the Alternative Credit Council released a report calling for
the retention of the passport once the UK leaves the EU.
The passport allows financial companies to do business in
one member state of the EU, or the European Economic Area
(EEA), and then ply their trade across the region without
having to be separately authorised in each country. But it
relies on single market membership, which in turn involves
accepting the free movement of people, something the UK
electorate voted against in the referendum in June 2016.
According to the report, the removal of the passport could
cost the UK thousands of jobs and billions in revenues. Around
5,500 firms registered in the...