Alternative Investment Management Association
“AIMA is extremely supportive of the on-going efforts to resolve the global financial crisis. We do agree that a global problem requires a global solution and we are working very closely with policy makers and regulators at a national, European and international level to reach global consensus on the future regulatory framework of the hedge fund industry. We do hope that these initiatives succeed and believe that the active cooperation and leadership we are providing on behalf of the industry is constructive.
It is important to stress that hedge fund managers in Europe are currently rigorously regulated at both national and European levels. For example, a significant majority of Europe’s hedge fund industry is based in the UK and the FSA has a stringent process of authorisation of hedge fund managers and a highly effective system of supervising the largest hedge funds. Other national regulators across Europe also have demanding and effective structures in place. The industry is also subject to a whole range of European directives.
The hedge fund industry in Europe and elsewhere has been hit very hard, like other sectors, by the current crisis, but has responded in an orderly way and has not triggered any systemic risks. Hedge funds did not cause the present market turmoil and because they have an essential role in providing liquidity to the markets, will be important in assisting any eventual recovery.
With a significant part of assets under management coming from institutional investors, the hedge fund industry plays a key role in preserving savings and pensions across Europe and also generates tens of thousands of jobs across the continent. It is part of the solution, not part of the problem.”
Andrew Baker, Chief Executive of AIMA
London, 23rd February 2009