AIMA

The Alternative Investment Management Association

Alternative Investment Management Association Representing the global hedge fund industry

AIMA Responds to Bundesbank Stability Report

29 November 2006

London, 29 November 2006: AIMA, the global trade association for hedge funds has responded to Deutsche Bundesbank Financial Stability Review 2006, published yesterday.

AIMA was disappointed to read the Bundesbank’s comments in its 2006 Financial Stability Review, that hedge fund activities pose a risk to the financial sector.

The Review failed to reflect on the increased levels of corporate governance from which hedge funds now benefit. Hedge fund managers – and in some instances, funds - are regulated throughout Europe and their standard of governance is high, a point endorsed last week by Charles McCreevy, the European Commissioner for Internal Markets and Services.

Indeed he commented that, in addition to direct regulation, hedge fund managers are also subject to the market disciplines enforced by hedge fund counterparties such as prime brokers, which are EC regulated banks, including some regulated by the Bundesbank itself. In addition, the growth of institutional investment into hedge funds has brought even higher levels of due diligence as investing institutions, such as pension funds, assess how hedge fund management companies are run as well and their fund’s investment performance.
  
The Bundesbank in its Review has recognised that, following a large US hedge fund experiencing major losses in September, the financial system absorbed its impact. It is important to note that the European hedge fund industry has not experienced such an event.

Contrary to the Bundesbank’ s conclusion, this shows that the risk management systems of hedge fund counterparties – including prime brokers – have improved dramatically in recent years. Therefore the Bundesbank may be exaggerating the risks imposed by hedge funds on the stability of financial markets.

- Ends -

For further information, please contact Eoin Brophy, Hume Brophy Communications on +44 (0)20 7499 8736


Editors’ Notes

1. About AIMA

As the only truly representative global hedge fund association, AIMA, the Alternative Investment Management Association, has over 1,100 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.

 

 

 
 
Back to Listing

Main Menu

  1. Home
  2. About
    1. Our Core Objectives
    2. AIMA's Policy Principles
    3. Meet the team
    4. AIMA Council
    5. Global Network
    6. Sponsoring Members
    7. Global Partners
    8. FAQs
    9. Opportunities at AIMA
      1. Analyst, Tax Affairs
  3. Join AIMA
    1. Benefits of Membership
    2. Membership Fees
    3. Application form
  4. Members
    1. AIMA Annual Reports
    2. AIMA Governance
    3. AIMA Logo
      1. Policy note
    4. AIMA Members' List
    5. AIMA Review of the Year
    6. Committees and Working Groups
    7. Weekly News
    8. Update Profile
  5. Investors
    1. AIMA Investor Services
    2. AIMA Members' List
    3. Investor Steering Committee
    4. Update Profile
  6. Regulation
    1. AIMA's Policy Principles
    2. Asset Management Regulation
      1. EU Asset Management Regulation
        1. AIFMD
        2. European Capital Markets Regulation
        3. MiFID / MiFIR
        4. UCITS
          1. ETFs and Structured UCITS
        5. Venture Capital
      2. US Hedge Fund Adviser Regulations
        1. Registration and Reporting
        2. Incentive-Based Compensation
        3. JOBS Act
      3. Asia Pacific Asset Management regulation
      4. Other Jurisdictions’ Asset Management Regulation
      5. Regulation of NBFCs / SIFIS
      6. Supervision
        1. UK regulatory reform
        2. European Supervisory Authorities
        3. US Self-Regulatory Organisations
      7. Remuneration
        1. UK
        2. US
        3. CRD IV and CRR
        4. AIFMD
        5. MiFID
      8. Shadow Banking
      9. Volcker Rule
      10. Other
    3. Markets Regulation
      1. Bank/Capital Regulation
        1. Capital Requirements Directive
        2. EU Bank Structural Reforms
      2. Derivatives/Clearing
        1. EMIR
        2. MiFID / MiFIR
        3. MAD / MAR
        4. Dodd-Frank Act Title VII
        5. Hong Kong
        6. IOSCO
        7. Singapore
      3. High Frequency Trading
        1. ESMA Guidelines
        2. MiFID / MiFIR
        3. MAD / MAR
        4. Flash Crash
        5. IOSCO
        6. Germany
        7. CFTC Automated Trading
      4. Insurance Regulation
        1. Solvency II
      5. Market Abuse
        1. MAD / MAR
        2. Indices as Benchmarks
      6. Position Limits
        1. MiFID / MiFIR
        2. CFTC Position Limits
      7. Resolution of Financial Institutions
        1. Europe
          1. EU Bank Recovery and Resolution Directive
          2. EU Non-Bank Recovery and Resolution
        2. CPSS-IOSCO
        3. Financial Stability Board
        4. UK
        5. USA
      8. Short Selling
        1. EU Short Selling Regulation
        2. Hong Kong Short Selling Regulation
        3. US Short Selling Regulation
        4. Short Selling Bans
      9. Securities Settlement
      10. Shadow Banking
        1. International Shadow Banking
        2. EU Shadow Banking
      11. Trading
        1. MiFID / MiFIR
        2. Dodd-Frank Act
    4. Tax Affairs
      1. EU Savings Directive
      2. FAIFs and FINROFs
      3. FATCA
      4. FIN 48 and IAS 12
      5. Financial Transaction Tax
      6. Investment Manager Exemption
      7. UK Offshore Funds Regime
      8. Other
    5. Search
    6. Resources
      1. Guidance Notes
      2. Jurisdictional Guides
      3. Noticeboard
        1. FATCA
        2. Other Hot Asset Management Topics
        3. Other Hot Markets Topics
        4. UK Partnership Tax Review
        5. Volcker Rule
      4. Hedge Fund Manager Training
      5. Quarterly Regulatory Update
      6. Webinar Programme
  7. Education
    1. AIMA Journal
      1. Search AIMA Journal articles
      2. AIMA Journal Archive
    2. ‘Capital Markets and Economic Growth – Long-Term Trends and Policy Challenges'
    3. AIMA/KPMG reports on state of global hedge fund industry
    4. Roadmap to Hedge Funds
    5. Guides for institutional investment
    6. Industry-standard DDQs
    7. Sound Practices
    8. Industry Guides
    9. CAIA
      1. FAI
    10. Services to Start-up Managers
    11. Useful Websites
    12. 'The Alternative Answer'
    13. Glossary
  8. Events
    1. AIMA Events
      1. AIMA China Hedge Fund Managers Forum
    2. Industry Events
  9. Media
    1. Press Releases & Statements
    2. Media coverage
      1. Articles by AIMA
      2. Television interviews
    3. Media Contacts
    4. Press Materials