INTERNATIONAL: IOSCO Publishes Hedge Funds Oversight Recommendations

Friday March 20 2009

The IOSCO Technical Committee has today published a consultation report on Hedge Funds Oversight. The Report makes preliminary recommendations of regulatory approaches that may be used to mitigate the regulatory risks posed by hedge funds.

The Consultation Report intends to describe the operating environment of hedge funds, highlight the associated regulatory risks , review and illustrate the work and recommendations issued by IOSCO and other international organisations and regulators in this area and make preliminary recommendations of possible principles and actions that may serve to mitigate these risks.

The report has been prepared by the Technical Committee’s Task Force on Unregulated Financial Entities (Task Force)-established by the IOSCO Technical Committee on November 24, 2008 in order to support the initiatives undertaken by the G-20 to restore global growth and achieve needed reforms in the world‘s financial systems following the recent financial crisis.

Following a request to examine issues surrounding unregulated financial entities, the preliminary findings and recommendations of the Task Force have been presented to the G-20 Working Group on Enhancing Sound Regulation and Strengthening Transparency and to the Financial Stability Forum.

The Report is welcoming public comments and will be finalised after consideration of comments received. The deadline for submission of comments is 30th April 2009.

Click on the above link for more details.