Regulators demand hedge fund look-through transparency

Looking through


On December 13, 2013 the Basel Committee issued its final standards for calculating capital requirements for banks’ investments in pooled funds. The regulators are taking a hard line on fund investments, which will be subject to punitive risk-weights unless banks can demonstrate meaningful look-through transparency into the underlying assets.

The approach outlined in December applies to the banking book. However, the Basel Committee is expected to take a consistent approach to fund positions in