• Delicious




Bank Of England Warns On Hedge Fund Supervision

by Robin Pilgrim, LawAndTax-News.com, London

29 June 2005

The Bank of England on Monday published its semi-annual Financial Stability Review, looking at risks to financial stability and measures taken to strengthen the UK's financial infrastructure.

In the report, the BoE warned that the limited data available on the activities of hedge funds could mean that surveillance of the risk-taking investment vehicles is difficult, and suggested that this was a concern given their increasing popularity in the United Kingdom and elsewhere.

"Due to statistical biases, voluntary reporting and partial coverage, hedge fund data are subject to a number of limitations which may distort actual industry returns," the Bank warned, continuing:

"If these limitations are not widely recognised, there is the risk that surveillance will be impeded and a misleading impression formed of the hedge fund industry."

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