Japan's Financial Services Agency: Summary Of Hedge Fund Survey Results And The Discussion Points

The hedge fund industry has rapidly developed and regulators have been paying more attention to them and their possible impact on the market. The cross-border activities of hedge funds have become more active and further cooperation among securities regulators is considered necessary. Measures and proposals to regulate hedge fund activities and their possible impacts on international financial markets have been discussed among regulators, multinational organisations and the industry.
In December 2004, the Financial Services Agency (''FSA'') announced the ''Program for Further Financial Reform'' with a concrete measure to study issues on hedge funds.
Based on the recent development of hedge funds in the international financial markets, the FSA conducted its first fact finding survey of hedge fund activities in Japan. This report summarises the survey results and the discussion points.