LONDON (Reuters) – tanley Fink, the Chief Executive of hedge fund manager Man Group, said on Thursday he supported measures to improve the quality and transparency of the hedge fund industry.
Fink, speaking at a securities regulation conference, said providing adequate third-party valuations in the hedge fund industry was difficult because of different tax regimes.
He said hedge funds are forced to go off-shore because they did not benefit from safe harbour rules with regards to tax that mutual funds enjoyed.
Fink said this forced funds to go offshore to places like Dublin and Luxembourg where talent in this area was tight and increasingly costly.
Risk management was key to the hedge fund industry, Fink told the International Organisation of Securities Commissions (IOSCO) conference in London.
“Because we are listed, we have had to comply with and develop a lot of financial controls,” Fink said.
He said good modelling of products could avoid problems and welcomed moves by IOSCO to come up with standards on risk management and risk modelling.
