Canadian fund regulation fragmented

Canadian hedge funds are subject to the laws of the province in which they operate. Because Canada does not have a national securities regulator, the hedge fund industry is regulated by 13 separate authorities governing the 10 provinces and three territories that make up Canada.

In practice, however, most provinces follow similar rules. There is a concentration of hedge funds in Ontario and so the Ontario Securities Commission is seen as the key regulator of funds in Canada. It follows rules that