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By Benedicte Gravrand, Opalesque London:
U.S. regulators and politicians have been very busy – to put it mildly – at creating legislative and regulatory proposals for the financial markets. Although it may look like a knee-jerk reaction from the credit crisis of 2007-08 (which might not be over yet), it is rather a sign, even if a bit blown out of proportion, of things to come: the end of the lightly regulated free market economy as we have known it for the last few decades, and the start of a more regulated and more supervised, wiser market. Economics – and financial rules - as ever, are still in the making, still adjusting.
The SEC’s Commissioner Luis Aguilar said in a speech on hedge funds in June this year: “In the United States, the calls for regulation are motivated by concerns that market integrity has been harmed and that systemic risk arose as a result of the exemptions and exclusions from the federal securities laws, that permitted a private market to thrive in ways that may have harmed the public markets. In fact, the market turmoil clearly demonstrated that the private fund market does impact the broader capital markets. This does not mean that all fund activity must be equally regulated, but hedge funds, especially large ones, are thought to require greater regulatory oversight.”
At a seminar in London yesterday, partners of t...................... To view our full article Click here
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