In the wake with the G20 Pre Summit Meeting kept in London at the beginning of September, representatives in the FSA and SEC consented to explore and identify common data classes they will will collect from hedge fund managers and advisers. The FSA and SEC have already been holding regular, top-level meetings coping with areas deemed to get of mutual interest to both regulators.

The objective is usually to allow the SEC and FSA to spot risks affecting their regulatory initiatives and mandated activities. The latest meeting also taken care of OTC derivatives and central clearing, several accounting issues, the impact of credit history agencies in addition to their regulation, corporate governance, short selling and investor compensation.

Regulatory reform seemed to be discussed; however, this appears to have already been left from the shade with the announcement of web data sharing and reporting requirements. It is being expected this will increasingly take centre stage as global regulatory players in addition to their political masters fully understand the global fallout from your current financial doom and gloom.

FSA Chief Executive, Hector Sants said, “The global crisis has underlined how intertwined real estate markets and institutions are and regulators around the globe have to band together to ensure appropriate oversight.”

While the details sharing discussions have fallen up in need of dual-regulation, the FSA also has announced last August, inside a memorandum of understanding while using US Commodity Futures Trading Commission (which regulates US derivatives markets) on enhancing cross-border clearing houses in addition to their supervision. This underscores the FSA position on increasing cross-border reporting and regulation as Sants proceeded to say, “We are typical working alongside the Financial Stability Board along with international regulatory committees they are driving forward global financial reforms. The strategic dialogue together with the SEC is often a valuable component from the discussions around these reforms, specifically in areas of joint interest as well as in identifying potential regulatory gaps.”

Currently, the UK already collects hedge fund data as you move the SEC is asking the US Congress for the very same powers to take action; the most up-to-date meeting on data sharing also are acting as an easy method by which the SEC can plug to the experience on the FSA in designing their very own domestic reporting requirements and also providing perhaps the most common platform with the regulators on the two major financial centres on the global economy.

SEC Chairman, Mary Schapiro added, “As the regulators of two from the world’s major market centres, the SEC and also the FSA possess a strong involvement in collaborating with regards to OTC markets and hedge funds, credit standing agencies along with market participants with cross-border operations.”

It is see-through regulators on both sides on the Pond sensible to grasp the nettle of cross-border cooperation together with a necessary development if regulatory arbitrage is for being avoided. Schapiro stated further, “Only through strong cooperation could we achieve coherent oversight of global actors and limit opportunities for playing the regulatory seams.”

How this increasingly cozy method of regulation relating to the US and UK will effect on the EU Alternative Investments regulatory efforts remains to get seen, but by giving a more unified front towards the proponents in the AIFM Draft Directive, the chances are greater that there is going to be some watering down of hedge fund requirements. Given the scene by many in London and elsewhere, is many US managers won’t meet the proposed AIFM requirements, this will likely seem like a lot more good news for UK hedge fund managers whorrrre equally averse to being built to comply with them.