• Delicious




BIS Chief Says Hedge Funds Don't Pose A Systemic Risk

by Lorys Charalambous, for LawAndTax-News.com, Cyprus

10 October 2005

Speaking at a banking conference in Mumbai on Wednesday, General Manager of the Bank for International Settlements, Malcolm Knight argued that hedge funds do not pose a systemic risk to the international financial system, but that more scrutiny should be directed at the way in which they are marketed to smaller investors.

Questioned by reporters on the need for increased regulation, Mr Knight observed that although they were the least regulated sector of the financial market:

"All hedge funds have a trillion dollars in assets and they have a heterogeneous group of investors and they have different strategies. So I don't think they pose a systemic risk to the world's financial system."

However, he went on to add that:

"At the same time these are vehicles that are appropriate for investment by the sophisticated investor and it is important that some concern is reflected...to look into the marketing to smaller asset holders."

A comprehensive report in our Intelligence Report series examining offshore investment, offshore stock exchanges, and hedge funds is available in the Lowtax Library at http://www.lowtaxlibrary.com/asp/subs_reports.asp and a description of the report can be seen at http://www.lowtaxlibrary.com/asp/description_report9.asp

 

 






Write a comment