Two advisory committees—one representing investors and the other hedge funds and asset managers—are set to make recommendations on proposed “best practices” and disclosure guidelines by the end of year, the U.S. Treasury Department said yesterday.
The two groups, one headed by Russell Read of the California Public Employees’ Retirement System and the other by Eton Park Capital Management’s Eric Mindich, are considering principles established by the President’s Working Group on Financial Markets. The Treasury expects to issue plans for a new hedge fund regulatory regime early next year.
Read’s group, which includes representatives of the AFL-CIO and the Washington State Investment Board, is to focus on what information hedge funds should disclose to potential investors. Mindich’s group is concentrating on best practices for information, valuation and risk management systems.
“The goal is to bring the principles to light,” Treasury Undersecretary Robert Steel said. The Treasury Dept. noted in a statement, “The committees represent a milestone toward a more competitive U.S. marketplace with the world’s highest standards for protecting investors and safeguarding against systemic risks.”