AIMA welcomes FSA's comments on hedge fund industry
UK - The Alternative Investment Management Association (AIMA) has welcomed the Financial Services Authority's (FSA) comments on the hedge fund industry in its annual Financial Risk Outlook paper.
The FSA acknowledged the growing importance and benefits of hedge funds to financial markets and observed that the overall risk of serious market disruption and confidence erosion from hedge funds remains low.
However the paper concluded the hedge funds and other alternative investments found the operating environment more difficult in 2005 because of reduced market volatility. It noted that some strategies have also become less profitable due to large fund inflows.
AIMA said it accepted the issues raised, specifically valuation practices and asset pricing and has commenced the second phase of its work in this area, working closely with key industry bodies.
Florence Lombard, executive director of AIMA said: “The global hedge fund industry is constantly seeking to review and improve its practices. AIMA’s stated objective is to have a working dialogue and work closely with the FSA.”
Daniel Flatt
Latest stories
London-based employer handed £350,000 fine for pension duties failure
An unnamed London-based employer has been hit with a £350,000 fine from The Pensions Regulator (TPR) for failing to fully comply with its pension duties.
XPS enhances fiduciary manager selection service to include re-tendering support
XPS Pensions has enhanced its fiduciary management selection service in order to help trustees through initial selection and mandatory re-tendering.
Fifth of DB schemes graded weak by TPR
One in five defined benefit (DB) schemes are in The Pension Regulator's (TPR) weakest two categories, analysis by Hymans Robertson has revealed.
AMX appoints SSGA as first passive funds provider
State Street Global Advisors (SSGA) has been selected as the first index manager for the Asset Management Exchange's (AMX) passive funds.
