Potential E100bn market for hedge funds opens as Germany passes law

The law change at the end of November makes the German mutual fund industry more competitive by being as liberal as the Ucits III framework on cross-border funds that was passed last year, according to PricewaterhouseCoopers (PwC). PwC said German regulators' attitudes to derivatives was easily the most radical change. Before the change, funds could use only plain vanilla derivatives with a formal risk management approach. Now, PwC said more complex derivatives will be available, not just for hedging purposes but for investment purposes generally and leverage via derivatives will be possi...