Monday, 26 January 2015
Last updated 8 hours ago
Dec 16 2008 | 3:48am ET
The international hedge fund lobby is responding to the news that one of its own may have ripped off other hedge funds in a historically big way.
Britain’s Alternative Investment Management Association called for restitution for victims of Bernard Madoff’s alleged Ponzi scheme. The lobbying group did not specify how those who had lost money should be made whole.
“Clearly, lessons must be learned, restitution must be secured investors, and processes/safeguards must be improved to prevent such a situation recurring,” an AIMA spokesman said.
Others focuses on the need to improve safeguards.
“The Madoff scandal highlights just how important it is to have independence of process in relation to administration of the fund and the valuation process,” Antonio Borges, chairman of the Hedge Fund Standards Board, said. “It also highlights the need for robust governance practices and oversight via independent boards, which will challenge management procedures and behavior.”
The HFSB is an industry self-regulatory body set up by a group of prominent hedge funds that seeks to get industry players to subscribe to a voluntary code of conduct.
Meanwhile, the head of the International Monetary Fund had some unkind word for U.S. regulators in the wake of the Madoff revelations.
“I’m shocked,” Dominique Strauss-Kahn said at a Madrid news conference. “The surprise is not that there are some thieves in the system; the question is, where were the police?”
“It’s very surprising to find you’re living in a system where a failure of the regulatory system was so big,” he added.
Jan 23 2015 | 1:00pm ET
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