US Treasury Official Calls For More Comprehensive Regulation Of Hedge Funds

by Carla Johnson, Investors Offshore.com

27 September 2005

A top United States Treasury official stated on Sunday that the country's financial regulators should consider a more comprehensive approach to the regulation of the hedge fund sector that goes beyond protection of individual investors.

Speaking on a financial regulation panel organized by the Institute of International Finance on the sidelines of the International Monetary Fund and World Bank meetings in Washington DC at the weekend, US Treasury Under-secretary Randall Quarles noted that on the issue of financial regulation, the area of hedge funds was where there was the "most room for improvement in our approach."

According to Quarles, this is because changes in the structure of the capital aggregation industry in recent years may have altered the way markets manage and disperse risk.

"Is there a policy response that's appropriate in the light of that or not? That's a question that has not been comprehensively asked in the official sector, at least in the United States," he stated.

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