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

Q&A: Quad Advisors’ Borish Is Looking For Real Traders, Not Index Huggers

Aug 20 2014 | 1:43pm ET

Peter Borish, who served as founding partner and director of research at Tudor Investment...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note