US-based hedge fund industry body the Managed Funds Association has expressed its support for the announcement of new legislation by Senators Charles E. Schumer and Richard Shelby, constructed to uncover and clean up financial fraud.

Richard H. Baker, MFA president and chief executive, says: "MFA welcomes today's announcement by Senators Schumer and Shelby that they intend to introduce bipartisan legislation to add new investigators and prosecutors to top law enforcement agencies in an effort to curb financial fraud.

'MFA members support efficient markets and embrace sound business practices and standards of excellence in professional conduct. Fraud and manipulation have no place in the financial services industry, and we welcome actions that will restore investor confidence and market stability. Senators Schumer and Shelby are taking action that is not only appropriate, it is necessary.'