As the brexit trade talks approach a deadline, the EU’s top market regulator is calling for a change in rules, which could limit fund companies’ ability to manage EU funds from London. < / P > < p > according to the European Securities and Markets Authority, EU based funds typically delegate portfolio management to their teams in London, New York and elsewhere outside the EU, or outsource them to other companies. This increases the risk, and once the UK leaves the EU, the risk is “likely to increase further”. The regulator proposes to limit delegation and to comply with EU standards regardless of where the fund manager is. < / P > < p > regulators also called for tighter rules on the use of so-called secondees temporarily assigned to a European Union Company. Esma’s proposal is part of a review of EU rules on alternative investment funds, including private equity, real estate and hedge funds. The latest proposal from Esma in a letter to the European Commission is likely to exacerbate tensions at a crucial moment in the brexit talks. The European Union has warned that banks and other financial companies must be prepared to do more in their offices in the EU. Jake green, financial regulatory partner at law firm Ashurst, said the proposals were “an attack on London.”.