Money managers under the microscope
Can you guess what it is yet?
Given the amount of political posturing in recent months, few hedge fund managers would deny that more regulation is coming. The question seems to be what will it look like when it finally arrives?
While the weekend’s meeting of G20 finance ministers in Horsham was dismissed by some as a damp squib, it did at least in the area of hedge funds paint part of the picture of what future hedge fund regulation might look like.
Ministers proposed that hedge fund managers are registered and that they disclose information needed by regulators to assess any systemic risks they may pose — similar to what was recently proposed by industry body AIMA.
Meanwhile, as revealed by Reuters, industry bodies AIMA, the MFA and the PWG wrote to the Financial Stability Forum, which is putting forward recommendations to the G20 ministers, on Thursday night, pledging for the first time to work together towards common standards.
However, their case could yet be weakened – the Hedge Fund Standards Board is so far not one of the signatories. While the HFSB may still pledge to work towards these goals, the episode shows there is still plenty more of the picture yet to be drawn.