Clients updates / Hedge Funds

The new rules will require managers of large hedge funds to disclose additional information about their activities and strategies and provide more detail about their investments, including the countries and industries in which they are invested, leverage exposures, and more. As expected, fund managers are objecting, arguing that the new requirements will lead to superfluous information overload.

From “low” to “moderate” risk of money laundering: the Cayman Islands Monetary Authority’s classification change and its impact on Israel.

With the goal of expanding the public’s investment options, the Israel Securities Authority published a first draft of a document for public comments on the core characteristics of two new financial products: alternative mutual funds of the hedge fund type and hedged mutual funds of funds.

A hedge fund is an entity comprised of several investors seeking to invest in financial assets to achieve a common profit, where the execution of the investment may change from one fund to another, in accordance with the investment strategies put in place by the fund manager.

The EU announced recently, following a meeting of its Economic and Financial Affairs Council (ECOFIN), that the Cayman Islands has been moved to Annex 1 of the list of “non-cooperative jurisdictions” for tax purposes.

As part of the ISA’s move to make investing in hedge funds more accessible to the public and to develop mechanisms for their oversight, it published a document for public comment that details the core characteristics of two new financial products – an alternative mutual fund of the hedge fund type and hedged mutual fund of funds.

The Israel Securities Authority recently published a staff position that has material implications on the hedge fund sector in Israel and on the investor public, including the mode of incorporation of hedge funds and the limit on the number of investors in a fund.