London 21st May 2007 – The Alternative Investment Management Association
(“AIMAâ€Â) has warmly welcomed the Financial Stability Forum’s (“FSFâ€Â) report
on potential financial system risks relating to hedge funds and its
recommendations in relation to the ongoing supervision of hedge funds and
their counterparties.
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 necessaryâ€Â.
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.
