FSF calls for action on hedge funds

The Financial Stability Forum (FSF) has issued a report calling for more robust supervision of hedge funds. The Update of the FSF 2000 Report on Highly Leveraged Institutions concludes that recently there have been some signs of counterparty weakening of controls in the industry. That is particularly worrying, given the rapid levels of growth in the industry, the BIS says.

The report makes five recommendations to address the changes in the industry:
1. Supervisors should act so that core inte

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