The Australian Securities and Investments Commission (ASIC) has changed the definition of ‘hedge fund' in a bid to tighten disclosure requirements for higher-risk schemes.
Beginning in February next year, the much-debated changes would mean a registered managed investment scheme would be differentiated from a hedge fund.
It follows long-held concerns from ASIC about investors misunderstanding the risks of certain hedge funds.
The changes would also mean that lower-risk schemes would not have to meet the rigorous disclosure obligations of more complex hedge funds, ASIC said.
"This will also benefit investors by more clearly differentiating hedge funds from other types of managed investment schemes so that they can better understand and assess these products," ASIC Commissioner Greg Tanzer said.
