Other positive spinoffs include fund of hedge funds managers and consultants, who can add value to investors in the areas of hedge fund selection and allocation among different fund strategies. 4  Merrill Lynch/Cap Gemini Ernst & Young World Wealth Report, 2002. 5  An estimated 1.7 million high net worth individuals (defined as individuals with more than $ million in financial asset wealth) in Asia hold in aggregate $ trillion of financial assets. (Merrill Lynch/Cap Gemini Ernst & Young World Wealth Report, 2002). 2  BIS Review 52/2002  Second, hedge funds can lead to more wide-spread use of innovative financial instruments and the development of cutting-edge technical and investment skills. Unit trusts typically go long-only on listed equities, bonds and cash. In comparison, hedge funds, with their broad investment mandates, can employ a selection of designer instruments and creative investment strategies and face little (if any) restrictions on what they can hold. Third, hedge funds can add to the liquidity and efficiency of our capital markets. The contrarian instincts of hedge fund managers provide liquidity and help curtail unsustainable asset bubbles. By seeking out arbitrage opportunities, hedge funds also improve the information flow and, consequently, the efficiency of the market. Further, specialist hedge funds that invest in unlisted stocks and unrated bonds facilitate fundraising by small, relatively unknown companies. Singapore’s regulatory approach Singapore’s approach to regulating hedge funds is risk-focused and differentiated, balancing the potential benefits with the risks that hedge funds could pose to the financial system.

Insofar as the legal provisions of Delegated Regulation (EU) 2018/3893 are more general, its practical application raises many issues that require additional clarification. To this end, in 2019 4. the European Banking Authority (EBA) established a Working Group on APIs under PSD2 Within this group, representatives of the EBA, the national competent authorities, the European Commission, and the European Central Bank consult the market participants (banks, third party providers and industry organisations) and identify potential practical implementation problems and possible solutions thereof. Based on the consultations, by 31 July 2021 the EBA has published clarifications on 31 issues relating to the practical application of the requirements for APIs. With the aim of converging the supervisory practices among the Member States of the European Union, in June 2020 the EBA published its Opinion on obstacles under Article 32(3) of the regulatory technical standards on strong customer authentication and common and secure open standards of communication (EBA/OP/2020/10)5. The work on the raised issues is still going on via the Q&As published by the EBA6. The Bulgarian National Bank, in its capacity as a regulator, has active communications with the market participants with the aim of improving the functionality of the dedicated interfaces already 2/3  BIS central bankers' speeches  built by the banks in the country. The process is developing in line with the European progress and in compliance with the legal framework, the opinions and clarifications published by the EBA.