EU investors to get more data on hedge fund risks

City A.M. Reporter
Investors are to get more information about the risks in investing in hedge funds, the European Union's new securities watchdog said.

Steven Maijoor, chairman of the European Securities and Markets Authority, said investors need information to better assess the risk profile of a hedge fund.

"It will be important to achieve a balance between increasing investor protection while avoiding imposing undue costs on fund managers," Maijoor told the annual International Capital Market Association conference.

"At the same time, regulators will need to be provided with sufficient information on the activities of alternative investment fund managers," Maijoor said.

ESMA will launch a public consultation in July as part of its efforts to flesh out new EU curbs on hedge funds, private equity groups and other alternative investment funds.

The EU is also approving new rules that will require all derivatives trades to be reported.

Maijoor said new trade repositories could be used for dealers to report trades to regulators to avoid duplication.