Regulation of Investment Funds Crucial for Financial Stability and Investor Protection.
The regulation of hedge funds, private equity, and sovereign wealth funds is a hot topic due to their impact on financial markets and the 2007-2009 crisis. Hedge funds were seen as a cause of the crisis, while sovereign wealth funds were seen as positive investors. The lack of transparency in these investment vehicles poses challenges for regulators aiming to protect investors and financial stability. The paper focuses on analyzing the regulatory situation in Switzerland.