# kaal:claim:1806252-024

**Claim.** Legislators had disincentives to impose harsher requirements on the hedge fund industry before the crisis, because harsher regulation could have driven franchise taxes and other business to offshore centers.

**Type.** mechanism  **Support.** argued

**Holds when.**

- a significant number of hedge funds operate through offshore centers

**Source quote.**

> Legislators also had disincentives to impose harsher requirements on the hedge fund industry, because harsher regulation could have resulted in a loss of franchise taxes and other business to offshore centers.

**From.** Kaal, *Hedge Fund Regulation Via Basel III* (2011), V. AN ALTERNATIVE APPROACH TO HEDGE FUND REGULATION, page 61

**Cite as.** Kaal, Hedge Fund Regulation Via Basel III (2011). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1806252

**Verify.** sha256 of source PDF `3343ebfe05a925c3d1a75625c4b351ccff515c50819a48d155804daacf01429d` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202011%20-%20Hedge%20Fund%20Regulation%20Via%20Basel%20III.pdf

**Topics.** regulatory-failure, law-and-legal-systems, economics, private-funds

**Keywords.** regulatory-arbitrage, offshore-jurisdictions, political-economy, hedge-fund-regulation

**Related claims.**

- extended_by: https://wulfkaal.github.io/claims/3405660-015
- extended_by: https://wulfkaal.github.io/claims/3405660-001

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.