Hedge Fund Reader : US Securities to take the issue of regulating Euro Hedge Funds lightly

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July 22, 2005

US Securities to take the issue of regulating Euro Hedge Funds lightly

Noting that the hedge fund industry as being vital for the world economies, U.S. Securities and Exchange Commissioner Roel Campos said that there will be light approach towards regulation of Euro Hedge Funds. Campos commented that the regulation put in place is not as burdensome as some people think it is. Most of the offshore hedge funds will have to follow the regulation though. US regulators will be using a risk based approach while overseeing hedge funds. Campos also noted that all this talk about regulation has picked up momentum due to some hedge funds being involved in illegal trading scandals which affected the US Mutual Fund market last year. He also mentioned that the US exams for hedge fund managers will be with the intention of increases interaction and collaboration. In Europe however this exam will be limited to only those who are involved in some sort of fraud. Campos was implying that the country of origin of the hedge fund does have an overseeing role and this will be considered while putting any regulation in place. Hedgeco.net reports:

“Campos is implying that the strength of the home country’s ability to oversee its hedge fund sector would be a factor in such considerations. He however noted that the hedge fund industry is vital to the world economies.”

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July 22, 2005 in Research | Permalink