Regulatory issues could affect hedge fund risk management

What are the key regulatory issues facing hedge funds? There is a tendency for governments, regulatory authorities and international organisations to eschew calm consideration for knee-jerk reaction to any out-of-the-ordinary event. The subprime calamity, a near shutdown of market liquidity, the failure of Northern Rock in the UK and Bears Sterns in the US is collectively having just such an effect. The problem with this approach is that it tends to stop regulators and others pursuing a more