Natural catastrophe and weather risk reinsurance specialist Nephila Capital has joined the Hedge Funds Standards Board (HFSB) as a signatory member.
HFSB brings together managers, investors, regulators and consultants from around the world to help determine how the hedge fund industry should operate.
Over 76 hedge fund managers so far have committed to the standards accounting for over USD260bn in assets under management. Sixty major international investors, including pension and endowment funds, sovereign wealth funds and funds of funds, have embraced the HFSB as members of the organisation's Investor Chapter to drive adoption of the standards.
"As part of the application process, we performed an in-depth, gap analysis of the firm's control structure in areas including disclosure, valuation, operational risk, governance, risk management and shareholder conduct," says Steve Glassman, a principal and chief compliance officer with Nephila. "This process was very beneficial to the firm and we expect it to provide an on-going benefit as each member of the HFSB is required to commit and conform to the standards on an annual basis."
The HFSB standards are reviewed regularly in collaboration with managers and investors to ensure that they are effective guidelines, remain relevant, and are consistent with public policy and evolving industry practices.