Iosco plans expansion of hedge fund information collection with 2012 survey
The International Organization of Securities Commissions (Iosco) is conducting a second hedge fund survey in September to identify systemic risks in the market.
The first hedge fund survey was conducted in 2011 after Iosco’s technical committee agreed a template in March 2010 for the collection of global hedge fund information with the aim of assessing possible systemic risks.
Iosco’s second hedge fund survey will be conducted in September 2012 with responses expected by the end of the year. Data will be collected by national regulators on a voluntary basis.
It is hoped the second survey will cover more countries than the previous one. Although Iosco does not have a final list of participants, Samad Uddin, senior economist in the research department at Iosco, says all major financial centres will be participating.
Iosco is also recommending regulators collect more detailed information than in the previous survey, although it is up to regulators to decide what information is collected.
The list of data Iosco recommends be collected has been amended. Some changes are being made in information categories. The categories are: general firm, adviser and fund information; performance and investor information for each qualifying fund; market and product exposure for strategy assets; geographical focus; turnover/number of transactions; trading and clearing; leverage and risk; liquidity risk; counterparty risk and other information.
Since the financial crisis Iosco has been trying to collect data on unregulated entities. It will assess the data to identify any concerns which will be highlighted to the jurisdictions affected, explains Uddin.
Data collected by Iosco is similar to that collected by the US Securities and Exchange Commission under Form PF and the UK’s Financial Services Authority as well as some other national regulators.
European Union-wide reporting standards for hedge funds will be adopted under the alternative investment managers directive, due to be implemented in July 2013.
This article first appeared in Hedge Funds Review