The Commission has published feedback on its consultation on hedge funds. It got 104 responses, which highlighted several key messages:
- hedge funds are complex products best saved for sophisticated investors;
- because funds differ so much it will be difficult to design a regulatory solution avoiding a one size fits all model;
- a global and international response would be better than just an EU one;
- concerns ranged from the need for more monitoring through operational issues to specific techniques funds use; and
- many respondents felt regulating hedge fund counterparties did not address all relevant systemic risks. Over 60% of respondents thought regulators should have more information about hedge funds.
21% of the responses came from the UK. The Commission will use the results of the consultation in its proposals for hedge funds and private equity funds in April as well as for discussions with G20.