Chancellor says London will be hit for Cayman funds

(SKY NEWS): With 80% of Europe’s hedge funds operating out of London, it is the UK that stands to lose the most, Britain’s new Chancellor, George Osborne has said in regard to the European clamp down on Hedge Funds. He explained that the UK would be badly hit because although a fund manager may be sitting inLondon, the fund’s pot of money may be in the Cayman Islands, categorizing it as a "foreign fund" that would have to comply with the new rules. But the plans were already well progressed before the Brussels meeting, giving Osborne little maneuverability. He said: "I was left a difficult negotiating hand by the previous government. I was outnumbered on the hedge fund directive."