The Financial Conduct Authority (FCA) has published a report setting out the findings from its hedge fund survey based on data received from 49 management firms. The data is intended to inform FCA’s approach to monitoring and managing risk in the investment
industry. The survey includes information on:
· the size and scale of the hedge fund industry;
· the size and scale of hedge fund activity in financial markets; and
· portfolio characteristics of hedge funds.
One of the objectives of the report is to show the investment community how the FCA intend to analyse the data that it will obtain from future regulatory reporting. There will be at least two more versions of the survey with data reported as at March 2014
and September 2014. The Alternative Investment Fund Managers Directive and its reporting framework are then expected to supersede the survey, providing similar data on a broader range of firms and funds. As part of its ongoing commitment to monitor the risks
posed by hedge funds, the FCA plans to remain actively involved in the Financial Stability Board (FSB) and the Securities Commission’s (IOSCO) work streams to improve the consistency of data gathering and analysis on the sector at a global level.