The International Organization of Securities Commissions’ (IOSCO) Technical Committee has published a consultation report on hedge funds oversight (the Consultation Report). The Consultation Report is set out as follows:

  • Chapter 1 - Outlines the potential risk posed by hedge funds and their managers to the financial markets under ordinary market conditions and where markets may be suffering from stress or instability.
  • Chapter 2 - Reviews and illustrates the work and recommendations issued by IOSCO, other international organisations and regulators to mitigate the risks hedge funds pose to market confidence and investor protection. The chapter outlines the work of a number of organisations including the Financial Stability Forum, IOSCO and industry codes. It also provides an overview of current regulation and trends in international and national regulation.
  • Preliminary recommendations that could help to address the continuing concerns, either by re-iterating and strengthening existing standards and practices in national regulatory regimes and/or by suggesting additional requirements.

The deadline for comments on the Consultation Report is 30 April 2009.

View IOSCO consultation report on hedge funds oversight, (PDF 714KB), 19 March 2009