The President’s Working Group on Financial Markets (PWG) has released a set of principles and guidelines for US regulators in their handling of hedge funds and privateequity organisations. These have moved away from the US norm of tight, formal regulations and are adopting the European-influenced light touch of principles-based regulation.
The PWG was created in 1988 by President Reagan, hence its name, to give recommendations for legislative solutions to enhance “the integrity, efficiency, orderliness, and competitiveness of our Nation’s financial markets and maintaining investor confidence” and comprises the Secretary of the Treasury, Henry Paulson, and the Chairmen of the SEC, the Federal Reserve and the Commodity Futures Trading Commission.
