Nov. 12 (Bloomberg) -- BlueCrest Capital Management Ltd., a London-based hedge fund firm that oversees about $15.4 billion, plans to open an office in Geneva as increased taxes and regulation make London a less attractive location, a person familiar with the situation said.
As many as 50 BlueCrest employees may move, said the person, who declined to be identified because the plans are confidential. The firm has about 300 employees in London.
Hedge funds are threatening to quit the U.K. for Switzerland as the government raises taxes rates for top earners and European regulators impose new rules on funds overseeing more than 100 million euros ($150 million). The British capital is home to at least 80 percent of Europeâs estimated $400 billion in hedge fund assets.
BlueCrest follows Brevan Howard Asset Management LLP, Europeâs largest hedge fund manager, which said in September it may open an office in Switzerland. BlueCrest was started in 2000 by former JPMorgan traders Bill Reeves and Mike Platt. The firm is 26 percent owned by London-based Man Group Plc, the largest publicly traded hedge fund manager.
The Financial Times reported the move earlier today. Caroline Villiers, an spokeswoman for BlueCrest in London, confirmed that the firm is considering plans to open in Geneva.
The U.K. government is preparing to raise taxes on residents earning more than 150,000 pounds a year to 50 percent from 40 percent. Last year, the government introduced a fee of 30,000 pounds for non-domiciled residents who had previously escaped the U.K. tax system.
The European Union is preparing rules for hedge funds that will limit the amount they can borrow as well as force them to use banks domiciled in Europe. Londonâs Mayor, Boris Johnson, said in September the rules may let countries such as Switzerland âto claim business and jobs that would otherwise stay in the European Union.â
http://www.bloomberg.com/apps/news?pid=20601087&sid=aRYgP1F3Y4gE&pos=4
As many as 50 BlueCrest employees may move, said the person, who declined to be identified because the plans are confidential. The firm has about 300 employees in London.
Hedge funds are threatening to quit the U.K. for Switzerland as the government raises taxes rates for top earners and European regulators impose new rules on funds overseeing more than 100 million euros ($150 million). The British capital is home to at least 80 percent of Europeâs estimated $400 billion in hedge fund assets.
BlueCrest follows Brevan Howard Asset Management LLP, Europeâs largest hedge fund manager, which said in September it may open an office in Switzerland. BlueCrest was started in 2000 by former JPMorgan traders Bill Reeves and Mike Platt. The firm is 26 percent owned by London-based Man Group Plc, the largest publicly traded hedge fund manager.
The Financial Times reported the move earlier today. Caroline Villiers, an spokeswoman for BlueCrest in London, confirmed that the firm is considering plans to open in Geneva.
The U.K. government is preparing to raise taxes on residents earning more than 150,000 pounds a year to 50 percent from 40 percent. Last year, the government introduced a fee of 30,000 pounds for non-domiciled residents who had previously escaped the U.K. tax system.
The European Union is preparing rules for hedge funds that will limit the amount they can borrow as well as force them to use banks domiciled in Europe. Londonâs Mayor, Boris Johnson, said in September the rules may let countries such as Switzerland âto claim business and jobs that would otherwise stay in the European Union.â
http://www.bloomberg.com/apps/news?pid=20601087&sid=aRYgP1F3Y4gE&pos=4
