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To: long-gone who wrote (93539)	2/11/2003 1:44:04 PM
From: lorne	Read Replies (1) \| Respond to of 116802

US anti-terror plans raise fears for hedge funds By Elizabeth Rigby in London and Robert Clow in New York Published: February 10 2003 21:57 \| Last Updated: February 10 2003 21:57 The US Treasury is proposing to extend its anti-terror regulations to clamp down on hedge funds round the world. It has drawn up rules that would compel any hedge fund with a "US nexus" - taken to mean a US investor, manager or sponsor - to give US authorities access to files on its investors. Industry members said the proposal could threaten client confidentiality, which has been cherished by many wealthy individuals who make up the majority of hedge fund investors. "Our client confidentiality is out of the window," said one London-based manager. "If you have one US investor - and nearly all funds do - you will have to disclose all your investors to the US." "This will affect thousands of hedge funds", said one London-based another European hedge fund manager on Monday. "The implications of this are scary". The new rules form part of an effort to extend the US Patriot Act. The act, passed weeks after the September 11 attacks, is designed to stop US financial institutions being used by terrorists to launder money. It introduced requirements on financial institutions to develop internal policies and procedures, appoint compliance officers, train employees and test their controls through independent audits. A Treasury official on Monday stressed that extending the act to offshore hedge funds "was still a proposal". He added: "We take very seriously the notion of not over-reaching when it is not appropriate." The Treasury plans to consult the industry before making a final decision. Hedge fund managers have reacted angrily to Washington's move, particularly since many European-registered managers comply with anti-money laundering rules in their jurisdictions. "Offshore managers who are concerned have every right to be concerned," said Satish Kini, US-based partner at Wilmer, Cutler & Pickering. Observers think this could be the first of many new regulatory burdens on the industry, particularly since the Securities and Exchange Commission is scrutinising US hedge funds after a series of high-profile scandals. Dermot Butler, chairman of Custom House, the Dublin-based administrator, said hedge funds could end up trying to rid themselves of US investors. "There is a concern outside the US that the authorities are not discrete discreet and will go on fishing expeditions. People don't want the US picking over their confidential files and seeing all their investors." news.ft.com

To: long-gone who wrote (93539)	2/11/2003 2:11:50 PM
From: Professor Dotcomm	Read Replies (2) \| Respond to of 116802

OT re Iraq The more you study the Iraq debacle, the more you realize how effortlessly Saddam is manging to chew up the Washington hawks on the terrain of his choosing - brinkman diplomacy. Dancing around like a buttelrfly, he has Rumsfeld, Wolfowitz, Rice and other dignitaries lurching from one corner to another. 'Old Europe', I feel, in contrast, had rumbled Saddam early and knew how to trump his cards. But poor GWB is discovering that issuing an execution order is not as straightforward as those for the Texan convicts on death row.