While it has by now been well established that there are significant benefits of enhanced integration and inter-linkages or conglomeration in IF, such as the economies of scale, operational synergies and effective use of scarce human resource, there are definitely certain risks. 1 In this area, I would like to offer few basic observations.
Other important initiatives have also been taken or are under way to improve and extend the scope of regulation. Examples include the regulation of hedge funds through the adoption of the Alternative Investment Fund Managers Directive and credit rating agencies, and the upcoming review of the Markets in Financial Instruments Directive (MiFID).