INTERNATIONAL: AIMA to Launch First Ever Fund of Hedge Funds Standards

Tuesday July 8 2008

The Alternative Investment Management Association (AIMA) is to publish a global best practices guide for fund of hedge fund managers aimed at becoming a business tool for fund of hedge fund managers.

This coincides with IOSCO Technical Committee’s announcement to prepare high level principles on funds of hedge funds by the end of this year aimed at presenting regulatory approaches of IOSCO member jurisdictions, identifying the related key regulatory issues, and to develop guidelines based on best market practices in the areas where additional investor protection regulatory issues are identified. The IOSCO Technical committee plans to achieve this, with the help of representatives of the industry.

AIMA’s first-ever practice standards for funds of hedge funds will be produced and overseen by a steering group of key fund of hedge fund managers worldwide.

The guide is set to be published early next year and will focus on areas including: risk management, disclosure to investors, valuation, management of conflict of interest and operational issues.

“There are currently no dedicated guidelines for fund-of-hedge-fund managers, yet the majority of new institutional investors tend to favour this investment route rather than investing directly in hedge funds,” said Andrew Baker, AIMA’s deputy CEO and a member of the steering group responsible for developing the guidelines.

Complimentary to providing direction on sound practices for fund of funds managers, the guide will also seek to provide relevant information for investors, regulatory and political communities, and hedge fund industry service providers.

For the full press release click on the above link

Related Articles:

`http://funds-axis.com/newsArticle.asp?type=2 &id=548`IOSCO identifies Technical Committee’s Work Programme

`http://www.funds-axis.com/newsArticle.asp?type=2 &id=530`IOSCO publishes the Final Report on Funds of Hedge Funds`http://www.funds-axis.com/newsArticle.asp?type=2 &id=501`

French Fund of Hedge Funds Proposals`http://www.funds-axis.com/newsArticle.asp?type=2 &id=418`

FSA consults on Funds of Alternative Investment Funds (FAIFs)