Hedge fund managers who thought they had escaped blame for the credit crunch should take a look Down Under if they want to find out what politicians have in store for them.

Hedge funds operating in Australia have been put on notice that a crackdown on short-selling is on the way, to deal with fears that the current rules could encourage the spreading of false and misleading rumours. Short-selling is in widespread use by investment banks and mainstream investors seeking to profit from falling shares, but it is most closely associated with hedge funds.