The Alternative Investment Management Association and the Managed Funds Association have welcomed the best practices reports released by the two committees appointed by the US President’s
The Alternative Investment Management Association and the Managed Funds Association have welcomed the best practices reports released by the two committees appointed by the US President’s Working Group on Financial Markets.
The response from the world’s two leading hedge fund associations is their first joint public statement since their announcement last week of an alliance under which London-based Aima and Washington, DC-based MFA will work together more closely and collaborate on key industry initiatives.
‘The MFA and Aima welcome the asset managers’ and investors’ committee reports and applaud both committees for the diligence and detail presented in each report, as well as the thorough and significant contributions by each committee member,’ say Richard H. Baker and Florence Lombard, chief executives of the MFA and Aima respectively. ‘We are in full support of the PWG’s ongoing efforts.’
‘There have been a number of industry initiatives around the world to drive positive change,’ adds Lombard. ‘Each has been valuable in its own right, and we believe the managers’ report reinforces the existing work of Aima and the MFA in the sound practices arena.
‘The challenge now is for the industry to bring about convergence between these various standards proposed, while maintaining the competitiveness of the hedge fund industry, and the MFA and Aima are committed to leading the drive toward this single global approach.’
Says Baker: ‘The MFA and Aima consulted with the committees during their drafting processes and were pleased to be included during the analytical phase of constructing the guidance. We have reviewed the reports, and find the guidance to be both comprehensive and substantive. We look forward to considering the reports in further detail, and will look to submit formal comments to the committees before the end of the consultation period.’
The two organisations advocate international harmonisation of sound business practices and the highest standards of conduct for the alternative investment industry and its investors worldwide, and are committed to participating in the development of a principles-based regulatory framework for the financial services industry worldwide.
Aima has more than 1,300 corporate members in 49 countries worldwide including managers of hedge funds and funds of hedge funds, prime brokers, providers of legal and accounting services and fund administrators. The membership of the MFA, which was established in 1991, consists of professionals in hedge funds, funds of funds and managed futures funds.
The reports have also been welcomed by Tom Brown, European head of investment management and funds at KPMG, who says: ‘KPMG welcomes the publication of guidelines for hedge fund managers by the President’s Working Group as a healthy development in these turbulent times.
‘We hope that these standards, together with those published earlier this year by the Hedge Fund Working Group in the UK, will take us towards a single global code of best practice shared by the hedge fund industry as that would be the best outcome for investors and managers alike.’
