FSA and SECjoin forces to boost hedge fund rules

THE TOP financial regulators in the UK and US, Hector Sants and Mary Schapiro, have joined forces to bring in new standardised hedge fund reporting rules between the nations.<br /><br />Sants, chief executive of the UK Financial Services Authority (FSA) and Schapiro, chairman of the US Securities and Exchange Commission (SEC), said in a joint statement they are to identify a common set of data to collect from hedge fund managers to help them identify risks in the industry.<br /><br />And, at a meeting of the SEC-FSA Strategic Dialogue, they said they also discussed the issue of executive pay, as the City and Wall Street watchdogs gear up to unleash strict new rules limiting banks&rsquo; ability to pay out bonuses.<br /><br />Sants and Schapiro said they also discussed over-the-counter derivatives rules, accounting issues, credit rating agency oversight and regulatory reform. <br /><br />&ldquo;The global crisis has underlined how intertwined financial markets and institutions are,&rdquo; Sants said.<br /><br />&ldquo;Only through strong cooperation can we achieve coherent oversight of global actors and limit opportunities for playing the regulatory seams,&rdquo; said Schapiro.