AIMA Issues Updated Guide For Selecting A Prime Broker

The Alternative Investment Management Association (AIMA) has published an updated guide to help hedge fund managers select their prime broker.
By Joe Parsons(2147488729)
The Alternative Investment Management Association (AIMA) has published an updated guide to help hedge fund managers select their prime broker.

AIMA’s ‘Guide to Sound Practices for Selecting a Prime Broker’ incorporates changes to the regulatory framework that affects the relationship between managers and their prime brokers, including reporting requirements and other measures introduced under the U.S.’s Dodd Frank Act and Europe’s Alternative Investment Fund Managers Directive (AIFMD).

The updated guide reflects the increase of due diligence conducted on prime brokers from both fund managers, and since AIFMD, depository banks.

The guide includes guidance on what issues fund managers need to be aware of when selecting one, or more, prime brokers, and highlights the likely impact of future regulatory changes.

“The regulatory framework within which both prime brokers and hedge fund managers must operate has changed beyond all recognition – putting new pressures on the provision of services, as well as making counterparty risk a core part of every hedge fund manager’s and investor’s consideration,” says Jack Inglis, CEO, AIMA.

“For these reasons, it has never been more important for hedge fund managers to fully understand the various issues related to the prime broker relationship and to conduct thorough due diligence before making a selection.”

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