There appears to be a diverging approach to the regulation and development of hedge funds as domestic regulators like the Hong Kong Securities and Futures Commission and the Financial Services Authority (FSA) in the UK are considering the retailisation of this popular financial product, and making it available to more consumers, while the international bodies such as IOSCO are lobbying for increasing oversight because of the reported perceived risks.
The Head of Investment and Securities at the Cayman Islands Monetary Authority (CIMA) said one of the reasons for this contradictory position is the varying definitions of hedge funds.
