E.U. Market Abuse Scenarios Hedge Fund Managers Must Consider

With regulatory authorities in the E.U. and elsewhere increasingly focused on market conduct, managing market abuse risks within hedge fund managers has become central to a firm’s culture of compliance.  For hedge fund managers trading on a cross-border (particularly a U.S.-E.U.) basis, divergent regimes make managing such risks more difficult.  In a guest article, Leonard Ng, co-head of the E.U. financial services regulatory group at Sidley, sets out some common scenarios faced by hedge fund managers and addresses how managers might wish to deal with them under the E.U. market abuse regime.  For additional insight from Ng, see “Sidley Austin, Ivaldi Capital and Advise Technologies Share Lessons for U.K. Hedge Fund Managers from the January 2015 AIFMD Annex IV Filing,” Hedge Fund Law Report, Vol. 8, No. 12 (Mar. 27, 2015).  For insight from Ng’s partner, Will Smith, see “Potential Impact on U.S. Hedge Fund Managers of the Reform of the U.K. Tax Regime Relating to Partnerships and Limited Liability Partnerships,” Hedge Fund Law Report, Vol. 7, No. 10 (Mar. 13, 2014); and our two-part series, “U.K. Disguised Fee Rules May Result in Increased U.K. Taxation of Investment Fees to Individuals Affiliated with Hedge Fund Managers”: Part One, Vol. 8, No. 15 (Apr. 16, 2015); and Part Two, Vol. 8, No. 16 (Apr. 23, 2015).

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