As reported by Reuters, top fund management firms have warned the European Commission's head of financial regulation that the lately imposed rules which were aimed at restricting more the practice at hedge funds, can easily damage the rest of the industry and prevent the industry from operating effectively. The Commissioner in charge of Financial Regulation, Michel Barnier, received a letter from around twenty investors, of which amongst these were the likes of BlackRock, Allianz, Fidelity and Schroders. This letter elaborated on the fact that the proposed reforms risk hampering Europe's single market in investment funds. The letter also suggested batter governance of alternative investment funds through the reduction of so called "letter box entities" whereby a company is registered in one jurisdiction but operates elsewhere. However, by limiting their ability to delegate both risk and portfolio management, to the markets in which they are investing in, the newly applied rules might greatly disrupt their industry.