A Japanese government official responsible for creating new collective-investment scheme rules going into effect next year is trying to reassure hedgies that he’s not out to get them. According to Financial Times, Naohiko Matsuo, a top honcho at the country’s Financial Services Agency, says he “is not intending to target hedge funds in particular.” Mastsuo’s comments come just as Japan is experiencing an exodus of hedge funds managers, heading for the more relaxed regulatory atmosphere of Singapore, which has been going out of its way to attract them. “We do not want to be an obstacle to financial innovation,” Mastuo told FT, and therefore “we have introduced a lighter touch” to regulating hedge funds, referring to the new Financial Instruments and Exchange Law. As it is only 25% of hedge funds focusing on Japan are actually based there, a much lower percentage than in other major HF markets because of regulatory concerns. As one analyst put it, “The stance of the regulators is much less clear” than in Singapore. “In Japan, it’s been difficult to get a big public statement from the regulators about what their stance is.” Whether Matsuo’s comments will help remains to be seen.
