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Reuters – A global regulatory body backed compulsory registration of hedge fund managers on Monday to restore investor confidence, saying the $1.3 trillion sector did not cause the credit crunch but may have amplified its effects.
The International Organization of Securities Commissions (IOSCO) represents regulators from over 100 countries, including the United States, Japan and the 27-nation EU.
Its final principles flesh out a statement made in March and a pledge from the G20 group of industrialized and emerging market countries in April that all hedge fund managers should be registered and directly supervised.
New York Times Blogs – The compulsory registration of hedge fund managers was backed by a global regulatory body on Monday in an effort to restore investor confidence.
The International Organization of Securities Commissions, representing regulators from more than 100 countries, said the $1.3 trillion hedge fund sector did not cause the credit crunch but may have amplified its effects.
IOSCO’s final six principles flesh out a statement made in March, and a pledge from the G20 group of industrialized and emerging market countries in April, that all hedge fund managers should be registered and directly supervised, Reuters reported. Those principles include mandatory registration of hedge fund managers while prime brokers who provide funding to hedge funds should also be subject to mandatory registration and supervision.
The European Union has also put forward a draft law that goes further than IOSCO, while the U.S. is also planning mandatory registration of hedge funds but so far in a less extensive way than the EU.
Bloomberg – The euro fell to a one-month low against the dollar after European Central Bank President Jean- Claude Trichet’s pledge to boost confidence failed to assuage concern the bank’s policy makers are split. The Dollar Index rose for a fourth day before a report that may show consumer confidence in the U.S. increased for a second month, underpinning signs its recession may be easing.
Vancouver Sun – Prime Minister Stephen Harper won a key commitment for Canada at the G20 summit, getting world leaders to agree to extend for 12 months a pledge not to raise new trade barriers.
“The biggest single thing that could turn this recession into a very long, extended depression would be global protectionism,” Harper said in a television interview Wednesday. “In our recent budget in Canada, we actually lowered tariffs on imported machinery and equipment. It’s important that we start to see some initiatives push in the other direction, to push towards trade liberalization.”
