Best practice recommendations seek to restore investor confidence
MFA attempts to restore confidence with issuance of best practices for hedge funds managers
The 2009 edition provides updates and revisions for voluntary adoption by hedge fund managers with recommendations on disclosure to investors. The report suggests a framework, governance and policies and procedures for valuations of assets.
It offers policies and procedures for management of trading operations including relationships with counterparties and service providers. Information is given on valuation policies, risk management and trading and business operations compliance.
The MFA said its guidance should help strengthen business practices of the hedge funds. It includes a code of ethics as well as general principles around crisis management and disaster recovery.
Richard Baker, MFA president and CEO, believes investors can benefit from reviewing the recommendations before making an investment.
He said the hedge fund industry has a role to play in helping restore financial stability and investor confidence as well as economic recovery.
"The hedge fund industry is taking steps to restore investor trust through the promotion of sound business practices and tools for investors to use as they conduct ongoing due diligence of money managers," he added.
The report incorporates the recommendations provided in the final President's Working Group's best practices for the hedge fund industry report.
MFA, the PWG Asset Managers' Committee and the Alternative Investment Management Association (AIMA) have committed to providing the Financial Stability Forum with a set of unified principles of best practices before April 30, 2009.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Risk management
SEC leadership change puts Treasuries mandate under scrutiny
FICC clearing models approved, but critics think delay could revive prospects of done-away trading
Markets Technology Awards 2025: Untangling the knots
Vendors jockeying for position in this year’s MTAs, as banks and regulators take aim at counterparty blind spots
Risk Awards 2025: The winners
UBS claims top derivatives prize, lifetime award for Don Wilson, JP Morgan wins rates and credit
An AI-first approach to model risk management
Firms must define their AI risk appetite before trying to manage or model it, says Christophe Rougeaux
BofA sets its sights on US synthetic risk transfer market
New trading initiative has already notched at least three transactions
Op risk data: At Trafigura, a $1 billion miss in Mongolia
Also: Insurance cartels, Santander settlement and TSB’s “woeful” customer treatment. Data by ORX News
Cyber risk can be modelled like credit risk, says Richmond Fed
US supervisors may begin to use historical datasets to assess risk at banks and system-wide
The changing shape of risk
S&P Global Market Intelligence’s head of credit and risk solutions reveals how firms are adjusting their strategies and capabilities to embrace a more holistic view of risk