Politics & Regulation

Hedge funds moving into Australia face stringent regulation

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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