With some form of hedge fund regulation likely imminent around the globe, one self-regulatory group may finally be getting some momentum. But is the Hedge Fund Standards Board’s announcement of 13 new signatories to its voluntary code of conduct too little, too late?
Several top British hedge funds, including The Children’s Investment Fund Management, Jupiter Asset Management and Odey Asset Management, are now among the 45 hedge fund managers that have committed to following the HFSB’s standards.
“In the current climate it is essential that the hedge fund industry demonstrates to regulators and policymakers that it is adhering to the highest standards by ensuring there are safeguards in place that would make a Madoff-type scandal very unlikely,” Antonio Borges, chairman of the HFSB, said.
Still, it’s unlikely that Borges’ assurances will carry much weight with lawmakers and regulators. The U.S. has already laid out its proposals, which include mandatory registration and reporting for hedge funds and private equity firms, and the European Union will issue its own blueprint next month. What is more, this week’s Group of 20 summit of world leaders is expected to produce some sort of agreement on hedge fund regulation.
Among the firms signing up to the HFSB code were Armajaro Asset Management, GSA Capial Partners, Horizon21 Active Alpha, Martin Currie Investment Management, Matterhorn Investment Management and Volteq Capital.