INTERNATIONAL: AIMA Responds to EC Consultation Paper on Hedge Funds

Wednesday February 4 2009

The Alternative Investment Management Association (“AIMA”) has today, 4 February 2009 responded to the European Commission’s Consultation Paper on Hedge Funds and called for a global response to the current crisis.

`AIMA’s CEO, Andrew Baker, said: “AIMA is dealing with policy makers and regulators at a national, European and international level on the future regulatory framework of the hedge fund industry. While we do welcome this initiative by the European Commission, the current problems are global and therefore we believe that ultimately, a coherent, global response is needed… The Commission is right to address areas of concern about the hedge fund industry. I would say that many of these issues are not unique to hedge funds and should not be looked at in isolation. It is also important to stress that the hedge fund industry in Europe is currently regulated and that regulatory framework has shown itself to be robust in very difficult market conditions.”

AIMA advises that despite the harshness of which the industry has been hit in Europe it has responded in an orderly fashion. It states that the hedge fund industry did not cause the present conditions and emphasizes that hedge funds will be essential in the industry’s recovery due to the liquidity it can provide to the market.

AIMA will be working with the Commission to formulate and improve the existing regulatory framework.