Has the moment for greater UK hedge fund regulation passed?

According to Laurence Fletcher at Reuters, UK Hedge Fund managers are undergoing rigorous questioning because of worries about future Ponzi schemes. Investors are beginning to pull back assets and are now playing it safe. The current temporary ban on short-selling financials in the UK has encountered much criticism from analysts and hedge fund executives. It will be interesting to see if the UK will soon follow the U.S., where Treasury Secretary nominee Timothy Geithner has pledged to pursue hedge fund registration. What do you think?