Regulation: Asia’s regulators push ahead with reform
Singapore encourages hedge fund start-ups; Billarook sees regional competition intensifying
Regulators in Asia are moving ahead independently of one another on reform of a variety of financial markets practices, without waiting for the results of parallel discussions in the west, according to sources investigating the trend. Although in the past Asian regulatory regimes have often taken guidance from the west, the retooling of those Asian systems that took place after the Asian crisis, Asia’s subsequent performance in the latest global crisis and a growing sense of regional competition have all contributed to the present trend.
"Asia’s regulators are moving pre-emptively on a range of reforms"
James Mudie, Billarook
"We are seeing how Asian regulators are no longer effectively price takers from a global perspective," says James Mudie, managing director at Billarook, a firm engaged with senior executives at financial institutions in Asia on asset-related and regulatory issues. "Instead, Asia’s regulators are moving pre-emptively on a range of reforms, as for example in Hong Kong and Singapore, where we have seen new frameworks for hedge funds implemented." Confidence
That push for reform stems from the confidence Asia’s regulators now have as they survey the carnage in western markets, and perhaps conclude that work done in a previous crisis has left Asia’s markets in relatively good shape.