Friday, February 27, 2009

European policy makers debate new hedge fund rules

Momentum for Europe-wide regulation of hedge funds continues to build.


Volcker calls for strong restrictions on hedge funds

Former Federal Reserve Chairman Paul Volcker, who heads President Barack Obama's Economic Recovery Advisory Board, urges "strong restrictions on risk-prone capital market activities -- hedge funds, equity funds, proprietary trading and the like."


AIMA Proposes Transparency and Cooperation Initiatives

The Alternative Investment Management Association ("AIMA"), a London-based association of hedge fund managers, has announced a new transparency initiative in favor of regular reporting to national regulators of large holdings and risk exposures. Other aspects of AIMA's new policy platform include support for:

  • disclosure to national regulators of aggregated short positions;
  • new policies to reduce settlement failure, including in the area of naked short selling;
  • creation of a global regulatory body to authorize and supervise fund managers;
  • creation of unified global industry standards