Alternative Investment Management Association
30 July 2007
London, 30 July 2007: The Alternative Investment Management Association (AIMA), the leading global hedge fund and alternative investment industry association, has responded to the International Organization of Securities Commissions’ (IOSCO) Consultation Report “Call for Views on Issues that could be addressed by IOSCO on Funds of Hedge Funds”.
The Consultation Report, published in April 2007, looks, in particular, at the question of what would be the appropriate means of regulating funds of hedge funds for retail investors.
In its response, AIMA supports a high-level principles based approach to the regulation of funds of hedge funds. The hedge fund industry is innovative and fast moving. AIMA believes the flexibility of a principles based regime has benefits over prescriptive (or proscriptive) rules which could be out of date within a few years - as a result of the evolution of new investment instruments and strategies.
AIMA also believes that the UK FSA’s recent proposals on Funds of Alternative Investment Funds (FAIFs) offer a practical way forward while at the same time providing adequate consumer protection. These proposals place the regulatory emphasis on the performance of due diligence by the fund of hedge funds manager.
Matthew Jones, Manager in AIMA’s Regulatory Department commented:
“AIMA understands and supports the need for adequate consumer protection. It also believes that this can be achieved using the FSA’s recent proposals as a basis. Retail investors should not be excluded from the innovative and leading-edge investment opportunities that funds of hedge funds offer”.
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Hume Brophy Communications
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1. About AIMA
As the only truly representative global hedge fund association, AIMA, the Alternative Investment Management Association, has almost 1200 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