A GLOBAL regulatory body backed compulsory registration of hedge fund managers yesterday to restore investor confidence, saying the $1.3 trillion (£790bn) sector did not cause the credit crunch but may have amplified its effects.
The International Organisation of Securities Commissions (IOSCO) represents regulators from over 100 countries, including the United States, Japan and the 27-nation EU.
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.
There are already signs that full convergence on global hedge fund rules may be difficult to achieve.
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.