Germany is expected on Saturday to win broad support from leading industrial countries on Saturday for a step-by-step approach to policing the fast-growing global hedge fund industry.

Peer Steinbrück, finance minister, will use a meeting of the Group of Seven industrial nations in Essen, Germany, to stress the economic benefits of hedge funds – but also the risks to financial stability. He will seek agreement on proposals including commissioning a joint report into the trillion-dollar sector and starting direct talks with hedge fund managers.