Fast-growth in the global hedge fund industry requires a “vigilant” stance by governments and central banks, the G7 summit in Essen concluded.

Germany won support – including from the US and UK - at the summit for a package of proposals intended to encourage greater transparency in the trillion-dollar hedge fund industry, without calling into question its economic benefits. “Whenever something is growing as quickly as this, it bears looking at,” said Hank Paulson, US treasury secretary.