BRUSSELS (Reuters) – Methods used to determine the worth of a hedge fund’s portfolio should be independently reviewed and transparent to investors, global market watchdogs said on Monday.
Hedge funds, blamed by critics for causing wild swings in share markets, have come under political pressure in the past year to be more transparent in the way they operate.
The International Organization of Securities Commissions (IOSCO) represents more than 100 national market regulators, from the United States to Europe and Asia.
IOSCO members, including the U.S. Securities and Exchange Commission and Britain’s Financial Services Authority — which oversee the bulk of the world’s hedge fund managers — published on Monday agreed guidelines for their day-to-day supervisory operations.
“The valuation issues relating to investment portfolios and their importance, particularly in current market conditions, to existing and potential investors are the same across a wide range of jurisdictions,” Michel Prada, chairman of IOSCO’s technical committee, said in a statement.
