Hedge Fund Regulation Proceeding World-Wide

Despite the recent US federal appeals court ruling striking down the SEC's hedge fund adviser rule, efforts to get a regulatory grip on the hedge fund industry are proceeding worldwide. Recently, Martin Wheatly, chair of the Hong Kong Securities and Future Commission noted that efforts to regulate hedge funds have begun in a number of jurisdictions. He specifically noted that the UK's Financial Services Authority has set up a center of hedge fund expertise to increase its oversight of 25 of the largest hedge fund managers in the UK. The FSA also collaborates with the London Investment Bankers Association on the establishment of regular six-monthly surveys of the exposures to hedge funds of London-based banks providing prime brokerage services. In Hong Kong, he related, licensing requirements are imposed on hedge fund managers operating there, regardless of whether the fund being managed is offered to local retail investors or only to professional invesors. About 80 hedge fund managers and advisers are currently licensed by the SFC, operating 148 hedge funds.