Fault Lines: Can hedge funds turn cross-continental regulatory split into competitive advantage?

Hedge funds already face a complex web of cross-border regulatory regimes – and this is being further complicated by the divergence of the two most important jurisdictions of the US and EU. A great transatlantic regulatory divide is emerging, with hedge funds being squeezed between US deregulation and EU regulatory tightening. It is creating a compliance nightmare that is fundamentally reshaping the industry.

Managing cross-border complexity has become a material issue for firms making strategic decisions. Hedge funds are reporting a range of challenges. They are turning to a variety of technology solutions to overcome them – but mid-sized firms finding gaps in the market. The combination of these factors means that cross-border regulatory complexity has morphed from being an inconvenient cost centre to become a key point of differentiation and a competitive battleground.