LONDON, Sept 14 (Reuters) - Global market regulators published new rules on Monday spelling out how small investors putting money into funds of hedge funds should be protected.
The International Organisation of Securities Commissions (IOSCO) published its final set of standards on best practice for funds of hedge funds investing.
These are pools of different funds that invest in hedge funds, seen as a way of broadening out the risks. Fund of hedge funds’ managers will have to make sure there is enough liquidity to meet redemptions. Managers should also set up proper due diligence procedures before making investments and ensure the fund has properly trained staff to do so.
Over 100 countries are members of IOSCO, including the United States, Japan and 27-nation European Union and all undertake to apply standards they adopt as a body.
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Reporting by Huw Jones, editing by Victoria Main