Best practices for hedge funds proposed

Hedge fund managers prepared one set of recommendations; investors with money in the funds compiled the other.
APR 15, 2008
Reports by two advisory panels have proposed "best practices" for hedge fund managers to increase their accountability, reduce systemic risks and provide investors with more information. Treasury Secretary Henry Paulson Jr. released the reports today in Washington. Hedge fund managers prepared one set of recommendations; investors with money in the funds compiled the other set. Hedge fund managers called for expanded disclosure practices for all aspects of their business, including hard-to-value assets, risk management, business operations, compliance and conflicts of interest. Meanwhile, the investor group recommended creating a Fiduciary's Guide and an Investor's Guide for investors. The Fiduciary's Guide would provide recommendations to individuals charged with evaluating the appropriateness of hedge funds as a component of an investment portfolio. The Investor's Guide would provide recommendations to those charged with executing and administering a hedge fund program once a hedge fund had been added to the investment portfolio. "We must implement best practices and continually seek to strengthen our market and regulatory practices," Mr. Paulson said. The advisory groups, which were commissioned in September to make recommendations to the President's Working Group on Financial Markets, outlined steps for hedge funds to improve their operating practices in areas such as disclosure, valuation of assets, risk management and preventing conflicts of interest.

Latest News

Osaic's ex-CFO Kristy Britt joins PE-backed accounting firm Wipfli
Osaic's ex-CFO Kristy Britt joins PE-backed accounting firm Wipfli

Britt is named CFO of Wipfli, a $600 million accounting firm that audits two NFL franchises

Y Charts acquires Informa's Zephyr to bolster SMA analytics for advisors
Y Charts acquires Informa's Zephyr to bolster SMA analytics for advisors

The acquisition pairs Zephyr's 21,000-product separately managed account database with Y Charts' newly launched AI agent assistant for investment research.

Advisor moves: Raymond James, Ameriprise, and Janney announce additions in Florida
Advisor moves: Raymond James, Ameriprise, and Janney announce additions in Florida

The war for talent continues in the Sunshine State with as Truist and RayJay teams managing a collective $1 billion in client assets defect to other firms.

Retirement’s new magic number? Workers say they’ll need $1.2 million
Retirement’s new magic number? Workers say they’ll need $1.2 million

Americans now estimate they need $1.2 million to retire comfortably, but rising costs and debt are making that goal increasingly difficult to reach.

Can mega RIAs go public? Integration may decide it, veteran leaders say
Can mega RIAs go public? Integration may decide it, veteran leaders say

Crewe Advisors' Ryan Halliday and Accelerated Wealth Partners' Eric Amar suggest mega RIA's readiness to integrate — not just scale — will determine whether an IPO exit actually works.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income