23 Jan, 2008
Nicole Blackmore -
Hedge Fund Working Group has published its best practice standards
for hedge fund managers, which calls for managers to adopt an
independent process for valuing portfolios.
The report also recommends enhanced disclosure to investors and
managers having a comprehensive framework to manage risk
Compliance with the hedge fund standards will be voluntary and
will operate on a "comply or explain" basis, according to the
The HFWG comprises 14 hedge fund managers and was set up last year
in response to concerns both about the growing impact of hedge
funds and financial stability.
HFWG chairman Sir Andrew Large, a former UK financial services
regulator, says: "Our final report is the result of extensive
consultation within the financial industry which has helped us to
refine the standards and in some important respects make them more
"Now it is up to investors to help take this forward. This is a
voluntary, market-led initiative based on disclosure. It is the
investors who can provide the market discipline to ensure these
standards are widely adopted."