The effect of regulatory developments in Germany, the US and European Union on the hedge fund industry, Ucits III and future prospects for the industry were debated on the latest N@ked Short Club.

Host Dr Stu was joined by guests Thomas Deinet of the Hedge Fund Standards Board, Gus Black from Dechert, Robert Mirsky from Laven Partners, Thomas Bullman of Hedge Fund Society/Hedge Fund College, Sam Jones from the Financial Times, Marilyn Ramplin and head-hunter Ed Lawrie.

Bullman gave an overview of the German act to prevent abusive securities and derivative trades which includes restrictions on naked short selling while Deinet outlined the latest developments of the European Union alternative investment fund managers (AIFM) directive. He talked about the stage it has reached in the legislative process as well as what it could mean for the industry.

Jones gave opinions on what the break-up of the UK regulator, the Financial Services Authority (FSA), could mean and the ramifications for hedge funds.

Discussion on the show also touched on US regulation as well as the role capital markets played in mitigating the financial crisis. Guests discussed the politicisation of centralised over the counter (OTC) derivatives trading as well as whether the EU's regulation of the hedge fund industry was likely to drive managers out of London.

Ucits III hedge funds versus offshore funds were also debated.

Music featured on the programme included the Orb, Gong, Led Zeppelin, Jimi Hendrix, Hawkwind and Neu.

Feedback on the show should be directed to presenter and host Dr Stu.

The N@ked Short Club broadcasts on Mondays from 21.00-22.00 GMT and is replayed from 15.00-16.00 GMT every Thursday on not-for-profit ResonanceFM at 104.4FM in London or via the web.

Resonance 104.4FM is a not-for-profit, UK-registered charity supported entirely by grants and voluntary donations.