In a speech given to the Financial Service Authority’s (FSAs) More Principles-based Regulation conference on April 23, UK Treasury minister Ed Balls said that the UK will propose that financial regulators work more closely together in sharing information on major counterparties' exposures to hedge funds. The proposal is based on the view that the quality of prudential supervision of hedge fund activity will be enhanced by greater co-operation between regulators in monitoring counterparties' exposures to hedge funds.

Although Mr Balls accepted that requiring hedge funds to disclose their portfolio positions to regulators would notbe productive, he announced that he intended to discuss with other G8 Finance Ministers a proposal to broaden the scope of the six-monthly enquiries that the FSA currently addressed to other international regulators as well as to prime brokers and other hedge fund counterparties which it regulates

http://www.hm-treasury.gov.uk/newsroom_and_speeches/press/2007/press_48_07.cfm