EU targets 'letter box' funds run from overseas in post-Brexit crackdown - reports

Set to broaden rules remit

The European Union has reiterated concerns over “letter box” entities run from outside the bloc following the UK’s departure from the bloc.

The European Commission was already reviewing separate rules for alternative investment fund managers, but is expected to broaden the remit with proposals for reform set to be revealed on Tuesday (23 November). With asset managers in London managing funds listed in Luxembourg and Dublin, Brussels is said to be concerned it will end up with so-called "letter box" funds, Reuters reported. The draft proposal of the rules review said: "The proposal seeks to achieve a coherent approach to delegation activities by European investment fund managers and supervisors." ESMA chair calls for f...