In fact, as in the United Kingdom, the principles-based, risk-focused approach to regulation has had considerable influence on this side of the Atlantic as well. For example, as you may know, the President's Working Group on Financial Markets (PWG) recently issued a statement of principles – ten in this case – relating to the regulation of private pools of capital, including hedge funds.
Our aim in presenting these principles was to spell out how a combination of market discipline and government oversight could be most effective in addressing the challenges to public policy objectives that I have described. The principles make clear that regulators and supervisors should adopt the risk-focused approach described by Sir Callum.