The Alternative Investment Management Association has welcomed the Financial Stability Forum’s report on potential financial system risks relating to hedge funds and its recommendations in relation to the ongoing supervision of hedge funds and their counterparties.
The FSF report, published at the weekend, recognises the contribution hedge funds have made to financial innovation and market liquidity and notes heightened risk measurement, valuation and operational challenges for market participants.
AIMA continues to support increased disclosure of information between hedge funds, their counterparties and, in turn, between counterparties and regulators.
“AIMA fully supports the FSF’s recommendations that the global hedge fund industry should review and enhance existing sound practices,” says Florence Lombard, executive director at AIMA. “AIMA has been striving for many years now to provide hedge funds, their investors and regulators with sound practices. AIMA is committed to working together with its members and the relevant regulatory authorities to provide additional guidance where necessary.”