Financial Times reports: Representatives of leading hedge funds are to meet deputy finance ministers from the G7 advanced industrial nations this weekend to discuss ways to increase the transparency of the secretive industry.
The talks, involving about 20 hedge fund representatives, will focus on what a future surveillance regime could look like. They mark the first concrete follow-up to the G7’s decision in February to start work on improving the transparency of the opaque and loosely regulated sector.
Following an initiative by Peer Steinbrck, German finance minister, the G7 finance ministers told their deputies to start consultations with the industry before this year’s G8 summit in Heiligendamm, on Germany’s Baltic Sea coast.
“Because of the nature of international capital markets, we need to get the industry on board,” a German government official said. “If we do not, they will always find a way to circumvent whatever rules and surveillance systems governments agree on. Injunctions and prohibitions are no use in this context.”