George Soros, the pioneering hedge fund manager, has announced his retirement from managing client’s money. This, he says, is due to the new Dodd-Frank legislation as he seeks to make use of an exemption in the regulations for family offices.

Jerome Lussan, CEO of Laven Partners commented: "Do not blame the regulator! I do not believe that Soros’ retirement will have a broader impact on US regulations nor that the fact that he is releasing his non-family clients is a blemish on the new SEC regulations. The context for Soros – a man who is 80 years old and whose external assets are only $1bn out of $25bn - is unique. The press coverage on his reference to SEC registration will be negative and it is a shame for investors that the Quantum fund will no longer be available, but in reality the US needs regulation as their liberal approach to date has left investors suffering the worst of the fund management industry to date. SEC rules are not perfect by any means and more onerous especially if they only relate to 1/25 of your assets, but UK regulations by way of contrast have limited the damage that has been seen in the US from independent fund managers since well before Madoff."

Lussan continued: "In our opinion, these rules are long overdue and will enhance investor confidence in the industry and lead to new inflows. This is particularly relevant for the small and midsized managers that have suffered so much from the poor reputation of the hedge fund industry since the 2008 financial crisis."

"I do not believe it is fair to blame the regulator for Soros’ decision. There are so many other culprits; banks that were selling hedge fund products without vetting them properly, fund managers (including fraudsters like Madoff) who have hurt confidence, and professional investors who did not carry out due diligence as they should have."