Alternative Investment Management Association Representing the global hedge fund industry
17 January 2008
London, 17 January 2008: The Alternative Investment Management Association (AIMA) has today launched its new Offshore Alternative Fund Directors’ Guide.
The updated Offshore Alternative Fund Directors’ Guide – originally published in June 2005 - is the latest addition to AIMA’s far-reaching body of work in the arena of sound practices and corporate governance. The Guide also further demonstrates the association’s ongoing efforts in setting global hedge fund industry standards. AIMA’s compendium of work now includes key initiatives in the areas of governance, hedge fund management, valuation, fund administration and business continuity.
The Guide is appearing at a time when there is increased scrutiny and debate surrounding the role of directors of offshore funds, particularly hedge funds.
The Guide provides advice on the selection and formal appointment of directors of offshore funds for both fund managers and individuals considering serving as directors themselves.
The revised Guide includes recommendations on key areas, including the independence of non-executive directors and conflicts of interest, as well as auditors’ communications and representations to the board.
The Guide sets out the fundamental legal and tax implications that should be taken into consideration when directors to a fund are appointed. Also covered within the guide are the basic tasks fund directors should carry out, as well as guidelines on such important issues as liability insurance and taxation.
Andrew Baker, Deputy Chief Executive Officer at AIMA, commented: “This is a vital initiative for an evolving global industry. Hedge fund corporate governance is very much under the spotlight so this Guide is a timely addition to the toolkit and shows how AIMA continues to lead the way for practitioners.
Our aim is to provide as much clarity as possible in an ever more complex and demanding area so that the industry can improve the knowledge of people performing this most important of roles. It is essential that we continue to acknowledge the desire of policymakers, regulators and investors to focus on the improvement of practices within the hedge fund industry.”
Baker concluded: “As more emphasis is placed on who is actually sitting on the Boards of Funds and how they perform their duties, it is important that both managers and Directors keep up to date with the current standards of practice expected by both regulators and hedge fund investors.”
The Offshore Alternative Fund Directors’ Guide has been generously sponsored by:
Baronsmead Partners LLP
Custom House Administration & Corp. Services Ltd
Simmons & Simmons
For further information, please contact Eoin Brophy or Evan DeBarra, Hume Brophy Communications, on +44 (0)20 7499 8736.
1. About AIMA
As the only truly representative global hedge fund association, 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 www.aima.org