The International Organization of Securities Commissions’ (IOSCO) Technical Committee has published Hedge Funds Oversight: Final Report, which proposes six high level principles relating to hedge fund regulation and systemic risk management. The six recommendations are that: (i) hedge funds and/or hedge fund managers/advisors should be subject to mandatory registration; (ii) hedge fund managers/advisors subject to registration should also be subject to ongoing regulatory requirements and disclosures; (iii) prime brokers and banks which provide funding to hedge funds should be subject to supervision and regulation of appropriate risk management systems; (iv) hedge fund managers/advisors and prime brokers should provide to regulators information for systematic risk purposes; (v) regulators should encourage and develop industry good practices; and (vi) regulators should have the authority to cooperate and share information to achieve efficient and effective global oversight.

To view the report click here.