Hedge Fund Reader : A step towards regulation of Hedge Funds in the UK

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September 24, 2005

A step towards regulation of Hedge Funds in the UK

The UK’s Financial Services Authority (FSA) has appointed Mr. Andrew Shrimpton, Head of Asset Management to take charge of the six-strong hedge fund unit have a high impact on financial markets. Such proposal was made in June when the FSA in one of the two discussion papers stated that it would bring 15 and 25 high-impact hedge funds under closer scrutiny. This step has been taken by the FSA to make sure that the economy does not end up in financial disarray since these hedge funds trade on international financial markets which are large-scale borrowers and have close relationships with investment banks, which could be perfect recipe for a financial disaster. FSA stated that it is not considering any radical change in its supervision policy of the lightly-regulated investment vehicles. This is a implication of the strong statement in which FSA believed, which alleged that certain unnamed hedge funds in the UK were "testing the boundaries of acceptable practice with respect to insider trading and market manipulation". But , the Mr. John Tiner, Chief Executive Officer, FSA, demanded the regulator to deliver its promises of deregulation. FT.com Reports:

The FSA said yesterday that Andrew Shrimpton, its head of asset management, would lead the six-strong hedge fund unit. Regulators have focused on hedge funds because of the amount they trade on international financial markets, because they are large-scale borrowers and because they have close relationships with investment banks.

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September 24, 2005 in Regulation | Permalink