Alert September 22, 2009

SEC and UK FSA Discuss Approaches to Global Regulation of Hedge Funds and their Advisers

It was announced that the SEC and UK Financial Services Authority (“FSA”) will explore common approaches to reporting and other regulatory requirements for key market participants such as hedge funds and their advisers with a particular goal of identifying a common, coherent set of data to collect from hedge fund advisers to help the SEC and FSA identify risks to their regulatory objectives and mandates.  The announcement followed one of a series of periodic meetings between the SEC and FSA at which the two regulators also discussed over-the-counter derivatives markets and central clearing, accounting issues, regulatory reform, credit rating agency oversight, short selling, and corporate governance and compensation practices.