New US Hedge Fund Guidelines

March 01, 2007

Regulators in the United States have published new principles and guidelines regarding hedge funds (referred to in the guidelines as "private pools of capital"). The guidelines acknowledge that private pools of capital bring significant benefits to the financial markets, but state that they also present challenges for market participants and policymakers. Investors, creditors, counterparties, pool managers, and supervisors need to be aware of these challenges and work to address them. The guidelines state that public policies that support market discipline, participant awareness of risk, and prudent risk management are the best means of protecting investors and limiting systemic risk.

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