Global regulators shine spotlight on hedge fund risks

The inquiry into whether asset managers should be considered ‘too big to fail’ is turning its attention to hedge funds and private equity funds. A new report suggests that highly-leveraged funds may be considered as ‘systemically important’ for the risks they pose to counterparties. This second consultation paper from the Financial Stability Board (FSB) in association with the International Organisation of Securities Commissions (Iosco), argues that leveraged funds should be sub…