INTERNATIONAL: Hedge Fund Reporting Requirements

Thursday February 25 2010

Hedge funds are likely to face increased regulatory reporting requirements following the publication of details about information to be collected by national regulators for collation and dissemination by the International Organisation of Securities Commission`s (IOSCO) technical committee. Using a template published by IOSCO hedge funds will have to give regulators operational details. This will also include details on the value of long and short positions in equities, bonds or derivatives as well as gross and net geographic exposure will be requested.

The first attempt to gather these statistics is set for September this year. Other information IOSCO said should be provided on a regular basis includes liquidity, the value of any borrowings, the value of unencumbered cash and credit counterparty exposure.

IOSCO has said that fund managers could also be asked for investor information such as the type of investors in a fund, recent redemptions and subscriptions and primary marketing channels.