Banks to be prohibited from hedge fund investments

But close-ended, unleveraged or Ucits fund may provide an exception

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Under proposed European Union rules that would ban proprietary trading, banks may be barred from investing in hedge funds, leading to an increase in entry barriers to the industry, say industry experts.

The European Commission’s proposed regulation on bank structure (BSR), which first surfaced in January 2014, would prohibit a bank, and any entity belonging to its group, from engaging, through dedicated desks and personnel using the bank’s own funds or borrowed capital, in proprietary trading in

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