Paul Myners thinks prime brokers could be next in line for a regulatory shake-up. The former executive chairman of Gartmore, who has become something of a celebrity-cum-guru since he chaired the committee that produced the seminal official report into institutional investment in the United Kingdom in March 2002, warms in today’s Financial Times that “the role of prime brokers will be queried.”
This Delphic remark concludes a passage in which he warns that hedge funds are likely to disappoint investors in 2003. “It will become embarrassingly apparent that too much money has been entrusted to fund managers whose talent was limited to salesmanship, and whose ambitions were defined in terms of their own greed,” he predicts.