Market Risk - AIMA Responds to the G7 Approach to Hedge Funds |
Date: Wednesday, February 14, 2007
Author: Gordon McAra (London, UK), RiskCenter
The Alternative Investment Management
Association (AIMA), a global hedge fund and alternative investment
industry association has responded to the statement on hedge funds
following the G7 Finance Ministers Meeting in Essen on 9/10 February
2007. AIMA welcomed the statement that hedge funds have contributed
significantly to the efficiency of the financial system. Nonetheless,
AIMA also recognises that G7 members need to have better understanding
on hedge fund trading activity. AIMA has highlighted that
European and Asian hedge funds managers and their counterparties
operate under full authorisation and supervision of the leading
international regulatory authorities such as the UK Financial Services
Authority, the Autorité des Marchés Financiers in France and the
Securities and Futures Commission in Hong Kong, among others. AIMA has pointed out that hedge fund managers are already sharing
information and data with these regulators – who have not expressed
specific concerns nor backed up calls for further disclosure.
Additionally European managers already have to comply with a multitude
of European wide regulations such as MiFID and CAD2. The G7 statement has referred to the possible development of a
voluntary code of conduct. AIMA believes that such an idea has neither
relevance nor meaning in this context of existing regulations. AIMA
would welcome the opportunity to contribute to an update of the 2000
report on Highly Leveraged Institutions by the Financial Stability
Forum – AIMA has also noted that the original report, whilst relating
to the collapse of Long Term Capital Management in 1998, also focused
on other market participants aside from the hedge fund industry.
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