Germany's deputy finance minister Thomas Mirow has called on the major industrialized nations to cooperate in trying to make hedge funds more transparent.
He told reporters: "All over the world, people who are in charge of the stability of the international financial system are dealing with the problem.
"What we would like to know is; are there systemic risks, yes or no, and if so, what could we do to deal with it in a reasonable manner."
He recognized that greater transparency could hit the business models for hedge funds and explained that he would not necessarily be pushing for a regulatory solution.
Meanwhile in the US, the Securities and Exchange Commission is set to vote on whether to raise hedge fund investor limits from Â£1 million to Â£2.5 million, which could exclude many from the market.