Alternative Investment Management Association
28 June 2006
London, 28 June 2006: These are the words that AIMA, the global trade association for hedge funds, has used to describe the FSA’s comments on hedge fund regulation in its Annual Report, published yesterday.
In the Report, FSA Chief Executive John Tiner said, “We have been careful to be proportionate in our regulation of hedge fund managers, bearing in mind the highly mobile nature of the business and their ability to trade into the UK from overseas.” He also notes the FSA’s increased focus on particular aspects such as market conduct, the determination of market values for certain financial instruments and the use of side letters.
AIMA welcomes the way that the FSA has recognised the global nature of the hedge fund industry and how it has worked and continues to do so with AIMA and industry practitioners to increase its access to information and understanding.
Commenting on the FSA’s Report, Florence Lombard, Executive Director of AIMA said, “The FSA is one of the leading global regulators and has always taken a pragmatic approach to hedge fund regulation. It offers a good example of how regulators have worked with the industry. More than 75% of the European hedge fund and related industries are based in the UK. An appropriate regulatory environment is one of the key reasons to their continued presence here.”
She added: “AIMA has acknowledged the concerns of the FSA and is well into the second phase of its work on hedge fund asset pricing which will be released in later in the year Similarly, the industry had already identified side letters as another area in which positive changes could be made and a working group will be seeking clarification from FSA on its concerns.”
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For further information, please contact Eoin Brophy, Hume Brophy Communications on +353 (0) 86851 5477
1. About AIMA
Founded in 1990, AIMA is a not-for-profit global trade association with corporate membership in 46 countries, including over 530 member companies in Europe. AIMA focuses specifically on hedge funds, managed futures and managed currency funds. More than 1000 corporate members (comprising 3500 individuals) enable the Association to create global tools for the benefit of its members, institutional investors and regulators. Its objectives are to increase investor education, transparency and promote due diligence and related sound practices, and to work closely with regulators and interested parties in order to promote the responsible use of alternative investments. AIMA’s membership includes fund of funds managers, institutional investors, hedge fund managers, prime brokers, exchanges, fund administrators, auditors, lawyers and other specialist service providers. Please visit us at www.AIMA.org.