Hedge Funds Review – The UK Financial Services Authority (FSA) has warned that the European Union’s attempts at “misguided” regulation could drive hedge funds out of Europe and wants a “proportional” solution to pay.
While it “might be possible for a hedge fund or a group of them to become systemic or to have a disruptive effect in markets”, the FSA has “taken steps in the UK to address these concerns by gathering extensive information from both hedge fund managers and their prime brokers, in order to assess the risks of potential systemic presence and to mitigate them,” reported Dan Waters, director, conduct risk, and asset management sector leader at the UK regulator.
