No hedge fund firm today should be designated a systemically
important financial institution by regulatory authorities,
according to the Alternative Investment Management
The Financial Stability Oversight Council (FSOC) is expected
to clarify soon the criteria by which it will determine which
non-bank financial companies may be deemed systemically
important – and thus subject to increased regulatory
scrutiny, including additional oversight by the Federal
But no hedge fund manager based or operating in the US or
elsewhere currently poses a risk to financial stability,
according to AIMA – the global trade association for
the hedge fund industry.
"We believe that no single hedge...