Financial News Online US- Plans for a hedge fund code of conduct need to be beefed up to protect institutional investors piling cash into the industry, Albourne Partners, one of the biggest UK specialist advisers, warned on Wednesday.
Albourne said more detailed standards were needed to ensure that hedge funds complied with the spirit of the voluntary rules. In a letter to Hedge Fund Working Group – established last year to draw up a set of best practice guidelines – Albourne called for asset managers to have proper governance, with a majority of non-executives, face-to-face board meetings and experienced directors.
It said funds should abandon the “boilerplate†that makes up most prospectuses, provide proper descriptions of what they do and add a minimum standard for rapid disclosure of key changes, such as top staff turnover, legal action, big drops in assets or changes to investment objectives.
