New York (HedgeCo.Net) The Hedge Fund Standards Board wants to improve the disclosures to investors regarding potential conflicts of interest. One proposal in particular would require managers to disclose any parallel funds if the proposal is adopted.
Yet another proposal seeks to change the internal compliance procedures in an effort to alleviate conflicts of interest.
The HFSB was set up in 2008 as the standard-setting body for the hedge fund industry. Hedge fund managers in the US and Canada account for 40 percent of the HFSB’s membership while assets under management of all HFSB members totals more than $700 billion.
The executive summary of the HFSB paper reads as follows:
This consultation paper outlines a number of proposed amendments to the Hedge Fund Standards which are intended to achieve three things: (i) investor disclosure of similar funds, accounts and vehicles including employee/partner co-investment, (ii) investor disclosure of trade allocation policies and (iii) sound internal arrangements to mitigate conflicts of interest.