Under scrutiny

South Africa's Financial Services Board has set about officially licensing more than 100 of the country's hedge fund managers during the past year. Although industry reaction to the exercise has been positive, some managers disagree over what form future regulation should take. Mark Pengelly reports

South Africa's hedge funds have recently had a different kind of exposure thrust upon them. Over the past year, the country's Financial Services Board (FSB) has been engaged in officially licensing local hedge fund managers - a process that involved managers submitting lengthy applications and acquiescing to day-long on-site visits from the regulator. The initiative represents the FSB's first attempt to get to grips with the sector, which had formerly been regarded as self-regulating (Risk March