Asset Management News is produced by professionals in their particular field at PricewaterhouseCoopers, to address important issues affecting the asset management industry. This edition contains articles that focus on topical issues, including:

• Striking a balance between regulation and innovation (an interview with Dan Waters, Sector Leader for Asset Management at the UK's Financial Services Authority)
• Europe's alternative investment fund managers directive poses serious questions If the EU enacts the Directive in its current form, it may impose a disproportionate regulatory regime on managers of alternatives funds that are not authorised UCITS.
• A global approach to regulating hedge funds? The International Organisation of Securities Commissions ("IOSCO") advocates a sensible way of regulating hedge funds, which strikes a good balance between 'micro-prudential' and 'macro-prudential' considerations, so minimising the risk they pose to the financial system.
• US legislation targets investments in tax havens: changes on the horizon:The economic crisis has paved the way for potential reactionary U.S. legislation that could significantly impact hedge funds and alternative investment funds.
• The game change for prime brokers: Learning from the past year's market crisis, and especially the Lehman Brothers insolvency, prime brokers are evolving their operating models to win market share and protect profitability.
• The rise of bank-owned administrators: As independent administrators become essential to hedge fund operating models, this is accelerating the consolidation of the hedge fund services industry and leading to convergence between banks and administrators.