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Independent: Hedge Funds in Watchdogs' Sights

The Independent newspaper out of the United Kingdom reports in an article Hedge funds in watchdogs' sights that the £500bn hedge fund industry faces clampdown in UK and US. “The Financial Services Authority will next month detail where it is going on regulating hedge funds and their managers, after a six-month consultation first revealed in The Independent on Sunday. The regulator has set up a special hedge-fund unit, led by Andrew Shrimpton, which is looking at how it can better control the £500bn industry operating out of London. Most hedge funds are registered offshore but are run in major financial centres, such as London, New York or Chicago. The FSA has been worried about the trading techniques used by some of the funds.” The other important quote is

To avoid confusion, the regulators say that hedge funds will have to comply with the strictest rules set down by either the FSA or SEC. "If we require three years of records and the SEC requires four years, then it will have to be four years," said an FSA source. The FSA also says that the SEC's chairman, Christopher Cox, has agreed to work with the UK regulator if the SEC investigates funds run out of London./blockquote>