Financial Markets and Investments
Lex Research Ltd provides analyses in the area of private equity and hedge funds, cross-border securities regulation and cooperation, clearing and settlement, and listings and alternative markets. Our advisers are involved in conferences, publications, targeted research projects, seminars and roundtable discussion with policymakers, practitioners and academic researchers. We intend to be the focal point for advice and research in the increasingly international area of financial market regulation. At the same time, we draw on our strengths as a research institution to do what we do best – opening the world of new ideas and helping our clients, such as policymakers and practitioners, to develop their learning, critical and creative thinking skills in this area. Our recent work has included advice on institutional investors, investment vehicle structures and corporate governance standards.
Private Equity and Hedge Funds
In recent years there has been a rapid increase in the number of hedge funds, most of which are established in overseas jurisdictions. Questions about possible regulatory approaches are publicly debated. The following questions are frequently asked: How well does anyone really understand the risks that arise from the in-large-part secret market conduct of hedge funds or from their strategies for high return in financial assets and derivatives markets? Should there be a separate product regime for hedge funds? Which changes in regulatory reporting requirements could be considered? These questions become all the more pressing for institutional investors as this sector may be subject to additional layers of regulation and faces greater legal scrutiny.
Our work is area has focused mainly on the following topics:
(2) risk and investment market analysis,
(3) regulatory issues,
(4) contractual and legal remedies and
(5) fund listings.
Alternative markets lighter regulatory touch – for example, regarding listing rules and disclosure – provides more flexibility and lower costs in the long-run for smaller companies. This makes alternative markets more attractive to high-technology and environmentally friendly firms. Yet, alternative markets have been developed over the last decades with a various degree of success. However, it is submitted that companies and investors should be wary of being seduced by alternative markets. Lighter regulation does not necessarily create a better market.
Our advisers are involved in:
(1) coaching management for investor presentations
(2) advice on company and registration matters related to listings and
(3) investor relations issues.