Coiupland Cardiff Asset Management, a $300m (£190m) Asia-focused hedge fund, will quit its London base to set up outside Europe if the Directive on Alternative Investment Fund Managers (AIFM) goes ahead as planned.

In its current form, the Directive could deny European investors access to funds run by non-EU managers. Alternative investment funds that are based in the EU would also be prevented from holding their assets in non-EU custodian banks. Many countries require funds to use local custodians, so this could scupper funds investing outside the EU.

Daily Telegraph