INTERNATIONAL: AIMA Issues Latest Guidance to UK Hedge Fund Industry

Wednesday October 22 2008

The Alternative Investment Management Association (AIMA) has today released its updated capital adequacy guidance (the Guidance note) to UK hedge fund managers giving advice on how to implement an Internal Capital Adequacy Assessment Process.

AIMA emphasizes the importance for firms to have in place robust risk-management processes and adequate capital to meet key risks.

The Guidance Note was produced by an AIMA-led ICAAP Working Group, consisting of industry experts from compliance advisory, auditing and law firms and has been updated to include issues identified from the experience obtained of the Internal Capital Adequacy Assessment Process (ICAAP).

The Financial Services Authority (FSA) currently require investment firms to undertake the ongoing ICAAP process to demonstrate that they have quantified risks, put in place effective controls and employed stress-testing techniques.

For further information on AIMA please click on the below links.

* AIMA publishes revised Sound Practices Recommendations for Hedge Fund Managers

* AIMA and MFA defend Hedge funds.