Hedge Funds in Italy

Updated on Wednesday 10th August 2016

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Businessmen interested in investing in an Italian hedge fund should become familiar with the legislation regulating the activity of this type of entities. Hedge funds are alternative investment funds which can be set up for different investment strategies and they are incorporated in strategic business environments. Usually, the hedge funds are set up by various institutions or natural persons with a high net worth value. Our team of Italian lawyers can offer legal assistance to those who are interested in investing in a hedge fund in Italy.

Regulatory framework for the Italian hedge funds

Hedge funds in Italy function under the rules and regulations prescribed by the reserved alternative investment funds law. The activity of the Italian hedge funds is monitored by several institutions and the main body in this sense is the Bank of Italy, which supervises the financial stability and the prudential management of such entities. It is important to know that the Bank of Italy has incorporated in its national legislation the European Union’s directive on the alternative investment funds managers.

Another important institution regulating the hedge funds is the Securities and Exchange Commission (CONSOB); our team of Italian attorneys can offer an in-depth presentation on the hedge funds’ legislation.

Marketing hedge funds in Italy

There are several types of legal entities which are allowed to market the Italian hedge funds. Some of the most important types of authorised intermediaries are the following:

• Italian investment firms;

• Italian asset managers;

• Italian investment companies with variable capital;

• banks.

The local legislation allows EU’s asset management companies to market the hedge funds, but only if the above mentioned institutions are informed by the bodies set up in the country where the management companies are registered.

Companies and banks outside the EU are also allowed to market the hedge funds, following an approval and the Bank of Italy and CONSOB.

Businessmen interested in receiving more details on the Italian hedge funds can address to our law firm in Italy.