LONDON, April 11 Hedge fund firm Man Group
has been able to unlock $550 million in capital
following a change in its regulatory status that has reduced its
corporate risk profile.
The reduction reflects the less balance sheet-intensive
nature of the group's activities relative to earlier years, such
as fund seeding activities and the scale of its guaranteed
products business, Man said in a statement on Thursday.
The change in Man's classification has been confirmed by
regulator the Financial Conduct Authority. Previously, the firm
was in a category that required higher capital levels to offset
Man Group's change in status frees up $300 million from the
removal of a mandatory capital planning buffer.
It will also be able to add a further $250 million to its
cash reserves because of the reduced capital requirements of its
new status. This will take its total surplus capital to around
$920 million from Jan 1. 2014, taking into account its existing
Man's shares were up more than 7 percent by 0727 GMT.
(Reporting by Sinead Cruise and Chris Vellacott. Editing by