Hedge Funds Politics & Regulation

Offshore funds, investors face greater scrutiny


The important offshore domicile of the Cayman Islands is planning to disclose more information about the thousands of hedge funds based there. At the same time, the U.S. Internal Revenue Service has asked hedge fund investors to disclose the assets they have invested in offshore accounts.

The move comes after 2008’s catastrophic financial meltdown, which has led investors to seek more transparency from the hedge funds in which they are invested and regulators to heighten their interest in monitoring hedge funds. Cayman services almost 10,000 hedge fund vehicles, and according to Reuters may begin publicly disclosing such basic information as a hedge fund’s directors, manager, auditors and administrator.

The Cayman