AIMA Calls For ‘Restitution’ For Madoff Investors

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.


In Depth

GSAM's Papagiannis: Liquid Alternatives For The Long Run

Apr 21 2017 | 8:44pm ET

Interest in liquid alternatives cooled a bit last year amid a broad shift in investor...

Lifestyle

Aston Martin Returns To Debt Market As DB11 Drives Turnaround

Mar 31 2017 | 5:21pm ET

James Bond’s preferred carmaker is returning to the public debt markets for the...

Guest Contributor

Debunking Conventional Investment Wisdom (Part II)

Apr 17 2017 | 5:56pm ET

The alternative investment industry is currently replete with buzzwords around data...

 

From the current issue of