LONDON, Sept 14 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.
Full report on:
(Reporting by Huw Jones, editing by Victoria Main)