The head of Germany's financial regulator, Jochen Sanio, has been attacked by members of the industry after he said hedge funds were a "significant danger to the stability of the global financial system".

Sanio, president of BaFin, told a meeting in Frankfurt of the technical committee of the International Organisation of Securities Commissions that in terms of supervision and investor protection, hedge funds were "a big black hole" but that "this must and will change".