According to a report by PwC and research firm the Economist Intelligence Unit, two thirds of institutional investors are displeased with levels of regulation in the hedge fund industry and have called for greater transparency and accountability. The report is based on a survey of 220 investors and product providers based in the Americas, Europe and Asia. Formal disclosures by hedge funds to regulators, as well as regulatory guidelines for how hedge funds report performance to investors needs to be enhanced said half the respondents.

About one-third also support more formal guidelines for hedge funds on valuation techniques. The research could reignite the debate as to whether the industry requires formal regulation. In January, hedge funds and investors praised a report from UK industry body the Hedge Fund Working Group, which issued guidelines encouraging hedge fund managers to use independent valuers and issue more regular reports on portfolio risk.