Hedge funds: Whistle-blowing or regulation?

At this month’s G20 summit, international regulation of financial services firms is certain to be the dominant debate. However, there are growing doubts that more rules will benefit the hedge fund industry.

UK prime minister Gordon Brown has made clear his views on hedge funds, saying that whatever name financial institutions go by, they should be supervised according to what they do. In March, G20 finance ministers agreed that hedge funds and their managers should be registered and have to “disclose appropriate information to assess the risks they pose”. In the US, discussions are taking place at federal and state levels as to how hedge fund supervision should play out.

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