Memo to London's hedge fund managers: There is a new supervisor in town.

The UK's financial regulator has hired Australian Andrew Crain to head up the team that oversees the roughly 40 largest hedge fund managers that operate in the UK. Crain, a former regulator in his home country, assumes his new job later this month. The team he will run sits within the wholesale investment division of the Financial Services Authority, the UK's equivalent of the US Securities and Exchange Commission.