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Brown Brothers Harriman & Co.
A global leader with close to 200 years of experience, Brown Brothers Harriman (BBH) helps many of the world's most sophisticated mutual funds, investment managers, banks and insurance companies achieve their international business objectives. With approx...
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The impact of ESMA's AIFMD passport ruling | Global Custodian
Sean Tuffy, senior VP investor services at Brown Brothers Harriman, said that there were two issues with the US from ESMA's perspective.
believes that about 75% of the assets in Cayman funds are managed by US groups.
By Sean Tuffy ...
By Sean Tuffy -
Sean Tuffy is head of regulatory intelligence at Brown Brothers Harriman, based in Dublin, Ireland, and also authors a blog on global fund management regulation.
Delegates from BBH
will be attending FundForum International next week.
Hedge funds in AIFMD passport limbo | Global Custodian
Sean Tuffy, senior VP investor services at Brown Brothers Harriman suggested that companies may decide to move their fund to an onshore EU country which would likely be Luxembourg or Ireland.
"Right now the trouble is that there are more questions than answers," said Tuffy
"It would be a pretty big ...
"It would be a pretty big change for the end investors to accept that the cash-out is not at the price they see," said Sean Tuffy, the head of regulatory intelligence at Brown Brothers Harriman & Co.
The fees also could hit investors who buy shares on days when a lot of cash flows into a fund, which also requires trading, Tuffy
"If the SEC
comes and says you can add this to your toolkit, I don't think there will be a lot of handwringing because those who don't want to do it, won't use it," Tuffy
"The challenge is that now the ...
"The challenge is that now the US rules are set, the current European proposals hew much closer to those US rules," says Sean Tuffy, head of regulatory intelligence at Brown Brothers Harriman, the financial services group.
"But the market is structurally very different."
While the US market has a very high retail share - Mr Tuffy's
parents in Boston can write cheques from their money market fund - in Europe most of the assets in such funds are institutional, from corporate treasuries, which see the funds as a cash-management tool.
Another distinction, which increases the risk that legislation could cause problems, is that much of the assets in European money funds are from outside the continent, in particular from Asia.
It is hard to get a precise handle on the proportion of assets coming from overseas, as there is no requirement to report it, says Mr Tuffy
says the money market fund providers among his
clients are concerned about the prospect of regulation that would make their products unsaleable in particular jurisdictions or to particular client groups.
cites the example of a Luxembourg-based constant value fund marketed to corporate treasurers in Japan, who might not be permitted to hold the same fund if it were of variable value.
According to Mr Tuffy
, money market fund providers in the US have already moved from announcing their plans to adapt existing products to the new regulations to "rumblings of a second wave of announcements looking at alternative structures to reconstitute prime money market funds".
describes this as "money flowing around the obstacles to meet what the market wants", but says European investors "are going to have a harder time getting around the rules".