Alternative Investment Management Association Representing the global hedge fund industry
10 June 2008
London, Tuesday 10 June 2008: The OECD Steering Group on Corporate Governance has hosted a high-level meeting involving representatives from the hedge fund industry and other activist shareholders, to share views on policy issues that could affect the industry.
The meeting, which took place in Paris on April 16th, saw hedge fund industry practitioners address members of the OECD Steering Group on pertinent market issues, including insider trading, market manipulation, and shareholder cooperation and acting in concert. The use of derivatives, and how they are used in conjunction with investors’ voting rights, was also discussed.
These discussions followed a meeting held by the Steering Group on Corporate Governance in November 2007 with representatives of the private equity industry. At that meeting, policy issues associated with alternative investors such as private equity firms and hedge funds were discussed. The Steering Group heard the views of the European Venture Capital Association (EVCA), the private equity trade association in Europe.
Chair of the OECD Steering Group on Corporate Governance, Mr. Marcello Bianchi, CONSOB, stated in his summary that activist investment strategies had an important role to play in maintaining a sound and efficient capital market. Regulatory intervention was nevertheless appropriate in some instances but such interventions should be informed by careful analysis about the nature of the issue and about the costs and benefits of proposed policy actions.
Andrew Baker, Deputy CEO of the Alternative Investment Management Association (AIMA) - who led the industry delegation - emphasised that AIMA was keen to continue working closely with the OECD Steering Group on its wider discussions of policy in the area of shareholder activism.
Mr Baker, Deputy CEO, AIMA, commented, “AIMA welcomes the opportunity to present its views to the Steering Group on Corporate Governance given the powerful influence that this group has on the policy debate with respect to shareholder activism.
We entirely agree with the Steering Group that activism is an inextricable part of ensuring capital market integrity and high levels of corporate governance.”
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Telephone: +44 (0)20 7499 8736
Telephone: +44 (0)20 7499 8736
1. Further information
For the outcome of the meeting held by the Steering Group on Corporate Governance in November 2007 of potential policy issues associated with alternative investors such as private equity and activist hedge funds, a document is available on the OECD website here.
2. About AIMA
AIMA, the Alternative Investment Management Association, has over 1,280 corporate members worldwide, based in 47 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 at www.aima.org.