Setting the battle lines

Author: | Published: 11 Jul 2011

Hedge funds will be required to disclose more information about their operations to investors under plans by the European Securities and Markets Authority (Esma).

Exchange traded funds (ETFs) can also expect more scrutiny on collateral and securities lending.

Speaking at the International Capital Market Association's annual general meeting in Paris on May 26, Esma chairman Steven Maijoor said the Authority will launch a consultation in July looking at proposals to ensure availability of information to investors that will allow them to better assess the risk profile of the fund.

Alternative investment fund managers will also need to provide regulators with "sufficient information" on their activities.

The consultation will be part of Esma's work providing technical advice to the EC on the Alternative Investment Funds Directive.

However he acknowledged the effect such requirements can have on funds. "We should be...