Reuters – Shareholder activism in how companies are run should be welcomed but hedge funds sometimes take it too far, a top regulator said on Wednesday.
Michel Prada, a senior member of the International Organisation of Securities Commissions (IOSCO), told the European Parliament that hedge funds made markets more efficient but presented several risks.
IOSCO is a global umbrella group of national market regulators that forges common standards.
Systemic risk and price manipulation were just two dangers, Prada told the parliament’s economic affairs committee.
