South Korea Moves To Speed Launch Of Hedge Funds

May 23 2011 | 2:24pm ET

South Korea’s market regulator, the Financial Services Commission, wants to speed reforms that will allow the launch of the country’s first hedge fund this year.

Korea’s JoongAng Daily says an FSC official has confirmed the plan, which will see the regulator submitting revisions to the capital market law to the National Assembly in July or August.

Rather than rewriting the law, says the daily, the FSC will seek an amendment to the law’s enforcement decree, which could take two to three months.

The change is expected to allow hedge funds to borrow up to 400% of their assets and bet on financial derivatives.

The daily says the proposal has been greeted with enthusiasm by local brokerages, asset managers and consulting firms and that an estimated 20 to 40 institutional investors will qualify to enter the local hedge fund market.

Retail investors with a minimum of 1 billion wong ($912,000) are also expected to be granted access to hedge funds.

“It would be too much to open the door to the hedge fund market to all retail investors,” an unnamed senior financial official told the daily.

“In the case of retail investors, only those with the ability to invest a certain amount of money and some experience will be allowed.


In Depth

Change In 'Accredited Investor' Definition Could Hurt Crowdfunding Space

Jul 25 2014 | 8:14am ET

The Securities and Exchange Commission is considering changes to its 30-year-old...

Lifestyle

David Yarrow On Growing His Hedge Fund And Shooting The Animals And People Of Africa - As A Photographer

Jul 23 2014 | 6:44am ET

While he’s always been a photographer, recent expeditions to Iceland, Ethiopia...

Guest Contributor

The Truth About Track Record Portability

Jul 24 2014 | 5:55am ET

The number of private funds converting to mutual funds has increased significantly...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note