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This Morning We Started A Hedge Fund in the Shower

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Everyone hates effin’ upstart competition. If you are a British hedge fund, though, you don’t have to worry as much as your American counterparts about newly launched funds stealing your investors. Because in order to operate a fund in Britain you first have to go through lengthy and expensive regulatory maze.

...every hedge fund manager in Britain must be authorized to operate. In the United States, there is no such requirement to start. When the S.E.C. adopted a registration requirement, it permitted broad exceptions, creating resentment among those funds that had to register.
The process of authorization in Britain takes two to six months and requires that the fund put up 13 weeks of expenses as regulatory capital, Mr. Spangler said.
"In the U.S., you can wake up in the morning and somewhere between the bed, the bathroom and the mirror, you can decide to be a hedge fund manager," he noted.

Well sure. That's how it works. If you happen to stumble upon a few dozen investors willing to give you a couple of million bucks on your way to the bathroom.

Lessons From the British Way of Policing Hedge Funds
[New York Times]