Saturday, 22 November 2014
Last updated 20 hours ago
Sep 14 2009 | 12:50pm ET
The International Organization of Securities Commissions has published a new set of standards aimed at increasing investor protection, specifically that of retail investors who are increasingly exposed to hedge funds through funds of hedge funds.
The new report, Elements of International Regulatory Standards on Funds of Hedge Funds Related Issues Based on Best Market Practices, expands on a previous report from the organization which focused on the methods by which funds of hedge funds’ managers deal with liquidity risk and the nature and the conditions of the due diligence process used by funds of hedge funds’ managers prior to and during investment. IOSCO has developed the following new proposals in these two areas:
In dealing with liquidity risk the fund of hedge funds’ manager should:
Due Diligence Processes
These should be carried out prior to any investment being entered into and on a continuous basis following the commitment. They can be divided up into the following areas:
These standards form part of a larger body of work that IOSCO has been engaged in with regards to addressing the regulatory issues presented by hedge funds.
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...