Global regulation body to back hedgie register

A GLOBAL regulatory body backed compulsory registration of hedge fund managers yesterday to restore investor confidence, saying the $1.3 trillion (&pound;790bn) sector did not cause the credit crunch but may have amplified its effects.<br /><br />The International Organisation of Securities Commissions (IOSCO) represents regulators from over 100 countries, including the United States, Japan and the 27-nation EU.<br /><br />Its final principles flesh out a statement made in March and a pledge from the G20 group of industrialised and emerging market countries in April that all hedge fund managers should be registered and directly supervised.<br /><br />There are already signs that full convergence on global hedge fund rules may be difficult to achieve.<br /><br />The EU has put forward a draft law that goes much further than the final principles adopted by IOSCO. The United States is also planning a mandatory registration regime.