As part of continuing efforts by regulators to monitor and limit systemic risk in the hedge fund industry, the Technical Committee of the International Organization of Securities Commissions’ (IOSCO), chaired by SEC Commissioner Kathleen Casey, has published details of an agreed template for the global collection of hedge fund information. The template was created by the IOSCO’s Task Force on Unregulated Entities (Task Force) at the behest of several of its members and is intended to “enable the collection and exchange of consistent and comparable data amongst regulators and other competent authorities for the purpose of facilitating international supervisory cooperation in identifying possible systemic risks in this sector.”
To accomplish this goal, the template sets forth 11 proposed categories of information to be collected which the Task Force deems to be important indicators of potential risk in this industry. These categories would provide regulators with important systemic and supervisory data but would not restrict any additional information that countries wished to collect at the domestic level. The 11 categories include general manager and adviser information; performance and investor information related to covered funds; assets under management; gross and net product exposure and asset class concentration; gross and net geographic exposure; trading and turnover issues; asset/liability issues; borrowing; risk issues; credit counterparty exposure; and a catch-all category that includes data regarding the complexity of the investment vehicles and the concentration of their holdings. The Task Force has recommended that the first data-gathering exercise should be carried out on a best efforts basis in September 2010.