IOSCO has published its final report on hedge fund oversight, including six high-level principles. The principles are:  

  • mandatory registration for hedge funds and/or their managers/advisers;  
  • registered entities to comply with ongoing requirements on organisation and operational standards, conflicts of interest and conduct of business, disclosure to investors and prudential regulation;  
  • registration/regulation and supervision for prime brokers and banks that fund hedge funds, with appropriate risk management to monitor counterparty credit risk exposures to hedge funds;  
  • managers/advisers and prime brokers to provide relevant information to regulators for systemic risk purposes;  
  • regulators to encourage and take account of good practice developments; and  
  • regulators to share information and co-operate.