Written question asked by Harry Cohen (Labour) on Thursday, 9 July 2009, in the House of Commons. It was due for an answer on Monday, 13 July 2009. It was answered by Sarah McCarthy-Fry (Labour) on Wednesday, 15 July 2009 on behalf of the Treasury.

Hedge Funds

Question: To ask the Chancellor of the Exchequer pursuant to the oral statement of 8 July 2009, Official Report, columns 969-87, on reforming of financial markets, what his definition is of systematically important hedge funds; and which hedge funds fall into this category.

Answer: A financial institution can be said to be of systemic importance when its failure could cause serious disruption to the financial system. In order to more closely monitor the systemic impact of hedge funds the Government are working with the Financial Services Authority to put in place a system of enhanced surveillance that can gather relevant and timely information on the funding, leverage, investment strategies and, in some cases, investment positions of individual funds managed from the UK.

Secondary information

Type: Written question
Reference: 496 c481W; 286628
Session: 2008-09
Related items: Reforming Financial Markets
Wednesday, 8 July 2009
Parliamentary proceedings
House of Commons
Subjects: Financial institutions
Link: View this Written question on www.publications.parliament.uk