IOSCO seeks comment on regulatory standards for funds of hedge funds

Date: Tuesday, October 7, 2008
Author: James Langton, Investment Executive

The International Organization of Securities Commissions has published for public consultation a series of proposals designed to address regulatory issues concerning retail investor involvement in funds of hedge funds.

IOSCO reports that these proposals were developed following its Report on Funds of Hedge Funds, which was published in June, and identified the issues in the two areas:

> the methods by which funds of hedge funds’ managers deal with liquidity risk; and

> the due diligence processes undertaken by managers prior to and during the life of an investment.

The deadline for responses to this consultation paper is Jan. 5, 2009.