Clifford Chance

Shadow Banking and the Funds Sector

14 June 2011

Shadow Banking is one of those terms, along with bail-ins, living wills, CoCo’s and alternative investment funds, that has crept into our vocabulary since the onset of the global financial crisis. Like many of these terms, it can mean different things to different people. As regulators begin to consider what regulatory measures to put in place to address the perceived risks arising from shadow banking, we consider how funds and fund managers may be caught up in the rush by regulators to close a perceived regulatory loophole and how the funds industry might respond to proposals specifically designed to regulate shadow banking.

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