Australian hedge funds are set to face broader disclosure requirements but the local industry welcomes proposed regulatory guidelines, which will complement its own efforts to attract retail investors scared off by the global financial crisis.
As a result of greater regulatory scrutiny, the Australian Securities & Investments Commission has released draft regulatory guidance with new disclosure benchmarks for retail investors buying into hedge funds. Specifically, ASIC is proposing hedge funds disclose information in product disclosure statements on key features and risks of the fund such as their investment strategy, fund structure, liquidity, leverage, use of derivatives and structured products, short selling and redemptions.
