The Swiss Federal Banking Commission has turned the spotlight on key aspects of the hedge fund business relating to systemic stability, market integrity, investor protection and business location. The SFBC's new report also deals with the regulatory and tax environment in Switzerland. In a statement, the SFBC pointed out that the current financial market turmoil, with illiquidity in some markets, illustrates how important it is for financial stability that international investment banks keep a very close eye on counterparty risk in their dealings with hedge funds. It goes on to recall that the SFBC places great importance on the to a constant monitoring of globally active Swiss banks. From an international perspective, Switzerland is a major market for the placement of hedge fund products although it has been far less significant as a location for hedge fund managers and as a domicile for hedge funds themselves. The SFBC supports efforts to create incentives for hedge funds managers to base themselves in Switzerland by improving their operating environment