AIMA WELCOMES FINANCIAL STABILITY FORUM HEDGE FUND REPORT |
Date: Monday, May 21, 2007
Author: Press Release
The FSF report, published at the weekend,
recognises the contribution hedge funds have made to financial innovation and
market liquidity and notes heightened risk measurement, valuation and
operational challenges for market participants.
AIMA continues to support increased disclosure of
information between hedge funds, their counterparties and, in turn, between
counterparties and regulators.
In this respect AIMA also welcomes the US Federal
Reserve’s Chairman, Ben Bernanke’s comments from last week encouraging the move
towards efficient and principles based regulations as those promoted by the UK’s
Financial Services Authority - seen by many as the leading hedge fund regulator
worldwide. AIMA also agrees that greater cooperation between regulators would
be a welcome step towards increased market discipline and more efficient global
supervision of all financial markets.
Florence Lombard, Executive Director at AIMA said:
“AIMA fully supports the FSF’s
recommendations that the global hedge fund industry should review and enhance
existing sound practices. AIMA has been striving for many years now to provide
hedge funds, their investors and regulators with sound practices. AIMA is
committed to working together with its members and the relevant regulatory
authorities to provide additional guidance where necessary”.
AIMA is due this week to publish its revised guide to
sound practices for European hedge fund managers. This follows the mid-March
publication of its guide to sound practices for hedge fund
valuation.
The FSF’s five recommendations
include:
- Supervisors
should act so that core intermediaries continue to strengthen their counterparty
risk management practices.
- Supervisors
should work with core intermediaries to further improve their robustness to the
potential erosion of market liquidity
- Supervisors
should explore and evaluate the extent to which developing more systematic and
consistent data on core intermediaries’ consolidated counterparty exposures to
hedge funds would be an effective complement to existing supervisory efforts
- Counterparties and investors should act to strengthen
the effectiveness of market discipline, including by obtaining accurate and
timely portfolio valuations and risk information
- The global hedge
fund industry should review and enhance existing sound practice benchmarks for
hedge fund managers in the light of expectations for improved practices set out
by the official and private sectors
-
Ends -
For further
information, please contact:
Eoin
Brophy
Partner
Hume Brophy
Communications
Tel: +44 (0)20
7499 8736
Mob: +353 86 851
5477
Editors Note:
About
AIMA
As the only truly representative
global hedge fund association, AIMA, the Alternative Investment Management
Association, has over 1,100 corporate members worldwide, based in 47
countries.
Members include leading hedge fund
managers, fund of hedge funds managers, prime brokers, legal and accounting
services and fund administrators. They all benefit from AIMA’s active influence
in policy development, its leadership in industry initiatives, including
education and sound practice manuals and its excellent reputation with
regulators, worldwide.
AIMA is a dynamic organisation that
reflects its membership’s interests and provides them with a vibrant global
network
AIMA is committed to developing
industry skills and education standards and is a co-founder of the Chartered
Alternative Investment Analyst designation (CAIA) – the industry’s first and
only specialised educational standard for alternative investment specialists.
For further information, please visit AIMA’s website www.aima.org
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