The Alternative Investment Management Association has welcomed the proposals set out in this week's industry report on the state of the Italian mutual fund industry.

The London-based hedge fund industry body believes that the initiative, led by the Bank of Italy, contains a number of welcome proposals that will greatly improve the country's hedge fund and fund of hedge funds industry.

Aima endorses proposals to lower the minimum investment level for hedge funds and funds of hedge funds, to abolish the maximum number of participants in a fund, and to create a separate regulatory regime for funds of hedge funds.

The association says many of the report's proposals echo the findings of its 2006 survey of the Italian hedge fund market, conducted in conjunction with law firm Simmons & Simmons, which sought to identify ways to overcome issues hindering the market's development.

"The success of the report's proposals will depend upon the collaboration between the government, regulators and market participants," says Aima deputy chief executive Andrew Baker. "Aima encourages the Bank of Italy to embrace a consultation-based approach with the hedge fund industry in meeting their planned objectives."

Massimo Maurelli, Aima's council member representing Italy, adds: "This initiative will start a deep and material change within the fund industry in Italy. In almost two decades' of dealing with policymakers and regulators, Aima has forged excellent relationships with legislators around the world. It is ideally placed to assist in the development of the proposed rules and hopes to play an important role in their implementation."

Aima has more than 1,280 corporate members in 47 countries including hedge fund managers, fund of hedge funds managers, prime brokers, providers of legal and accounting services and fund administrators.

Click here to access the report of the industry working group on Italian mutual funds (in Italian).

Click here to access the June 2006 survey by Aima and Simmons & Simmons, entitled A Survey into the Italian Hedge Fund Market, from a Participant's Perspective.