Britain to reduce the rules of smaller private stock companies and hedge boxes

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The UK government plans to reduce private stock rules and hedge funds by providing a lighter regulatory system for smaller groups to encourage more investment.

The Ministry of Treasury is expected to announce on Monday that it raises the threshold of size to which managers of alternative assets are subject to the main rules of the sector, from 100 million pounds of money under the administration to 5 billion pounds.

A new system will be presented with less well -known groups of less than 5 billion pounds of assets, which the treasury hopes to provide them with time and money and enhance the UK position as a dominant center Private property rights and Hedge boxes In Europe.

This step, which is planned by the government and the financial behavior authority to consult with the industry, is likely to be welcomed by many private stock and hedges’ fund managers. But some in this sector are afraid that a violent regulatory reaction from the European Union will provoke.

“The disposal of costly and repeated requirements will help increase capital flows, enhance public and private capital markets, and party innovation,” said Rob Healy at the Critical Funds Association, which represents many of the largest hedge funds in the world.

The work government may also face internal criticism of this step. While the ministers indicated that economic growth is the first priority, any perception that the rules are reduced to enrich the wealthy financiers, who are likely to angered the members of the workers ’parliamentarians who are already concerned with the social welfare cuts that will strike the handicapped.

FCA works with the Ministry of Treasury to create separate organizational systems that are adapted to the specific requirements of investment funds and investment capital companies.

Emma Reynolds, Minister of City, said that the proposals mean “demolishing unnecessary barriers in front of investment, such as the costly organization that prevents asset management companies from growing and providing capital to companies all over the country.”

The treasury last month committed To reduce the total cost of the red tape of business by a quarter to increase investment and inject more dynamics into the country’s stagnant economy.

As part of the planned counseling, it is also expected that officials of the Treasury and FCA will search for ways to reduce the burden of reporting to alternative fund managers and eliminate interference with other rules.

“We want rules, specially designed for investment managers in the United Kingdom,” said Simon Walls, the temporary executive of the markets at FCA. “These can allow them to work more efficiently, increase competing support, competitiveness and economic growth.”

The government plans to cancel the legislation of the manager of the alternative investment fund – which covers investment capital funds, investment companies and real estate funds, as well as private stock funds and hedge funds – which the United Kingdom inherited from the European Union.

In place, officials aim to introduce a more simplified system that covers detection, payment, capital, leverage, risk management and business behavior that is graduated according to the size of the alternative asset managers.

“This consultation is an important step in securing the UK’s position as one of the most prominent private capital centers in the world,” said Michael Moore, CEO of the Special Ar -shares and Equity Association in private stocks.

When the European Union updated its bases for alternative fund managers last year, there were concerns in the industry, it will stop allowing the European Union’s funds to delegate many of its activities to countries outside the bloc, such as the United Kingdom.

In the end, Brussels left the rules of delegation in place while tightening controls and requirements for examination.

The European Union rules apply to alternative investment managers, who are more than 100 million euros of assets, or those who have more than 500 million euros who have no influence and investors for five years.

Some executives of private shares and the hedge fund believe that the UK should not reduce its bases for the sector too much, which worries that this can lead to a violent regulatory reaction from Brussels and endanger the delegation system.

The hedge funds in the UK run 355 billion pounds of assets, which amount to 85 percent of a total total in Europe, according to the alternative trade management authority.

The UK also formed more than half of the stock capital of 1.15 trillion euros under management in Europe in 2023, according to advisers Arthur de Little.

Participated in additional reports from Alexandra Hill and Lucy Fischer