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From Komfie Manalo, Opalesque Asia – Australia’s market regulator, the Australian Securities and Investments Commission (ASIC), said it would allow submissions from industry players to better define "hedge funds." The order was given on concerns that the current definition affected a number of funds that do not exhibit the same risks to investors as 'true’ hedge funds, ASIC said in a statement.

Currently, Australia has no universally recognized definition of a hedge fund. ASIC already sought two consultations on the definition in the context of seeking input on appropriate investor disclosure by hedge funds.

In developing the definition in RG 240 ASIC, hedge funds are classified into the following:

• certainty in application – a definition that is capable of being applied consistently and with certainty by a court
• consistency with international regulatory approaches, industry associations and other bodies such as IOSCO, and
• common characteristics associated with hedge funds that are of particular regulatory concern, such as the use of leverage, derivatives or short selling.

In June of last year, ASIC released a ......................

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