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From Kirsten Bischoff, Opalesque New York:

Financial regulation designed to place a more robust structure around the hedge fund industry has been the focus of repeated debate and many drafts of proposed legislation in multiple countries over the past two years. As the scope of the regulation (and the even higher demands of investors) becomes clear, managers have begun planning for the costs that will be incurred as they adapt their firms to meet the demands of new laws. For most, it seems as though the costs will be bearable, the price to pay for gaining access to large, institutional investors that require a firmer regulatory environment for their allocations.

Much more worrisome for hedge fund managers are the costs likely to be imposed by new taxes as deficit-ridden governments around the globe gaze hungrily at the financial industry’s most successful and rapidly growing sector.

One of the key areas of increased scrutiny multiple tax amendments are expected to hit the industry over the next 12-18 months, say experts at PricewaterhouseCoopers LLP in their latest asset management report “A Second Wind: The regulation, taxation and distribution of hedge funds around the globe”, unveiled by the firm at the GAIM Conference this week in Monaco.

“Performance and meeting the needs of investors are number one priorities for hedge funds but in the middle and b......................

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