Page "Hedge fund" Paragraph 94

Offshore centers offer business-friendly regulation, which has encouraged the establishment of hedge funds.

Major centers include the Cayman Islands, Dublin, Luxembourg, the British Virgin Islands, and Bermuda.

Hedge funds have to file accounts and conduct their business in compliance with the requirements of these offshore centers.

Typical rules concern restrictions on the availability of funds to retail investors ( Dublin ), protection of client confidentiality ( Luxembourg ) and the requirement for the fund to be independent of the fund manager.