Hedge funds disclose strategy in a bid to appeal to Japanese investors scared off by Basel II
The hedge fund industry is disclosing strategy in a bid to appeal to Japanese investors scared off by Basel II regulation, according to an official at Japan’s Financial Services Authority (FSA).
Japan’s Basel II rules have hampered investment from the jurisdiction’s regional banks.
In an interview given to Reuters news agency, Mitsuhiro Kawamoto, a deputy director at the FSA, said: “Hedge funds are beginning to become more transparent to investors,” adding: “Regional banks, which are not so capable of understanding what hedge funds do, are retreating from investing in hedge funds.” Japan’s Basel II regime, introduced in March this year, forces banks to back up the amount they invest in hedge funds by up to 12.5 times their initial outlay.
More on Structured Products
Software from Calastone seeks to bring structured products into the digital age
Regulation and low interest rates pose greatest challenge
Tim Mortimer on the value of put options in structuring
Morgan Stanley offers returns on the rise and the fall of the S&P 500
Sign up for Risk.net email alerts
Sponsored webinar: IBM
Watch highlights of this year's London conference
Operational risk and the challenges of defining and dealing with conduct risk
Watch discussions and speakers from our North America conference
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.