REGULATION WATCH- FRA issues new regs that sound like a chaperone agreement for investment funds: The Financial Regulatory Authority (FRA) issued yesterday new regulations that would allow companies (as legal persons) to set up and manage investment funds by piggybacking on licensed banks, insurance companies, investment banks, or micro-lenders, according to a statement. The licensed entity would be required to set up a committee comprised of one representative from the fund and up to four independent members to oversee the fund’s activities. This sounds to us a lot like chaperone agreements from the securities brokerage industry, as in the US, where a US broker-dealer can provide cover that allows a foreign broker to speak with investors without registering in the US itself.

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