Those with an interest in Japanese alternative assets might be interested to know that the country’s Securities and Exchange Surveillance Commission (SESC) has begun to step up scrutiny of art funds, among others, in an attempt to protect investors from potentially large losses. Given that contemporary art is the easiest to bet on due to the highest potential valuation step-ups, it will be interesting to see what effect, if any, increased scrutiny of art funds will have on the market for contemporary works. Just as interesting will be whether other governments will seek to follow in Japan’s footsteps.
For the full story, read Takahiko Hyuga’s “Japan Broadens Financial Scrutiny, Targets Art, Racehorse Funds” on Bloomberg.com.
