Hedge fund groups forge international alliance

Date: Wednesday, April 9, 2008
Author: Stephanie Baum, Financial News

Two hedge fund industry associations in the US and Europe have forged an alliance as alternative asset managers move closer to adopting international self-regulation principles amid calls for greater transparency.

The Managed Funds Association and the Alternative Investment Management Association will exchange information, participate on each others’ boards, discuss the development of shared initiatives and collaborate on educational seminars.

Richard Baker, MFA President, and Florence Lombard, AIMA chief executive said: “MFA and AIMA will develop a framework for increased cooperation on issues of common interest such as the adoption of a global, principles-based regulatory system which will unify our members across jurisdictions and foster industry-wide compliance with the highest levels of sound business practices and integrity.”

Eric Vincent, MFA chairman, added: "We seek to establish a unified global industry voice, to avoid duplication of effort on common initiatives and to foster market disciplines and efficiencies for our members, counterparties and investors worldwide.”

There has been a push in recent years in the US and Europe for greater uniformity and increased transparency as the hedge fund industry matures.

A survey of 220 institutional investors found that two thirds of institutional investors are not happy with the levels of regulation in the hedge fund industry and want greater transparency and accountability, according to a report published last month by accountancy firm PwC and research firm the Economist Intelligence Unit.