Australia Regulator Looks To Redefine 'Hedge Fund'

May 23 2013 | 10:39am ET

Before issuing new transparency guidelines and other regulatory changes, the Australian Securities and Investments Commission is asking an important question: What, exactly, is a hedge fund?

ASIC may tighten its definition of "hedge fund" before new rules on disclosure come into effect on Feb. 1, and it's asking the industry for help. The regulator's move comes in response to concerns that its current definition of hedge fund—any registered managed investment scheme that either calls itself a hedge fund or possesses at least two hedge-fund like characteristics—captures too many funds that are not "true" hedge funds.

Among the main characteristics that ASIC currently looks for are complexity of strategy or structure, the use of debt, derivatives and short-selling, and performance fees.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...