Politics & Regulation

Hedge funds moving into Australia face stringent regulation


Hedge funds planning to market in Australia may be subject to stricter regulations in the future, as the financial watchdog is expected to apply greater scrutiny to offshore managers – many of which ‘passport’ into the country using accreditations from their home jurisdictions.

Nathan Cahill

Under existing Australian regulations, domestic hedge funds must typically hold a Australian Financial Services Licence. Offshore managers can apply for exemptions if they have the equivalent accreditations from a select list of countries that include Hong Kong, US, the UK and Germany. However, hedge fund regulations in some jurisdictions are generally