Alternative Investment Management Association Representing the global hedge fund industry
25 February 2008
London, 25 February 2008: The Alternative investment Management Association (“AIMA”) – the global hedge fund industry association - has welcomed the FSA’s confirmation of the policy of introducing investment in funds of hedge funds and other alternative investments authorised in the UK through fund of alternative investment funds (FAIFs).
In its consultation paper, “Funds of Alternative Investment Funds”, the FSA has confirmed that the tax issues described in their March consultation paper on retail access to FAIFs have been resolved following discussions with the Treasury. A separate paper by HM Treasury has laid out the tax framework which will allow FAIFs to operate within its existing regulatory regime.
AIMA has worked in close consultation with the FSA on development of this policy since 2006, and believes that the FSA’s recommendations for UK retail investment in FAIFs signify that hedge funds are appropriate and suitable investment vehicles for all types of investors.
AIMA has already produced a substantial body of work on valuation, one of the key areas highlighted by the FSA, which noted the valuable work that has been done to provide detailed guidance in this area. AIMA published its Guide to Sound Practices for Hedge Fund Valuation in March 2007.
Andrew Baker, Deputy CEO of AIMA, commented:
“AIMA is encouraged by the FSA and HM Treasury’s latest recommendations to enable UK retail investment in FAIFs. This signifies that hedge funds are to be regarded as mainstream investments. We will continue to support the FSA as it finalises its draft rules.”
“Regulators worldwide recognise that the hedge fund industry is a valuable component of the investment management landscape, and we believe that all investors should have the freedom to invest in market-leading products that aim to manage risk and deliver absolute returns, as part of a diversified investment portfolio.”
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1. About AIMA
As the only truly representative global hedge fund association, AIMA, the Alternative Investment Management Association, has 1,280 corporate members worldwide, based in 49 countries.
Members include leading hedge fund managers, fund of hedge funds managers, prime brokers, legal and accounting services and fund administrators. They all benefit from AIMA’s active influence in policy development, its leadership in industry initiatives, including education and sound practice manuals and its excellent reputation with regulators, worldwide.
AIMA is a dynamic organisation that reflects its membership’s interests and provides them with a vibrant global network
AIMA is committed to developing industry skills and education standards and is a co-founder of the Chartered Alternative Investment Analyst designation (CAIA) – the industry’s first and only specialised educational standard for alternative investment specialists. For further information, please visit AIMA’s website www.aima.org
2. FSA’s Consultation Paper
CP08/4 on Funds of Alternative Investment Funds is available on the FSA website www.fsa.gov.uk