JOHANNESBURG, April 25 (Reuters) – South African regulators plan to bring the hedge fund sector within the scope of current legislation to increase investor protection, the Reserve Bank said on Wednesday.
“Similar to other international initiatives, South African regulators intend to bring the hedge fund sector within the scope of current legislation in order to create a more transparent environment to enhance investor protection,” the bank said in its March quarterly Financial Stability Review.
Last week a draft report commissioned by the G7 industrial powers said regulators should consider asking major dealer firms to provide more information about their total exposure to hedge funds.
The report also urged investors and counterparties to make sure hedge funds give them frequent updates about the risks they are taking.
