Best practices for hedge funds proposed

Hedge fund managers prepared one set of recommendations; investors with money in the funds compiled the other.
APR 15, 2008
Reports by two advisory panels have proposed "best practices" for hedge fund managers to increase their accountability, reduce systemic risks and provide investors with more information. Treasury Secretary Henry Paulson Jr. released the reports today in Washington. Hedge fund managers prepared one set of recommendations; investors with money in the funds compiled the other set. Hedge fund managers called for expanded disclosure practices for all aspects of their business, including hard-to-value assets, risk management, business operations, compliance and conflicts of interest. Meanwhile, the investor group recommended creating a Fiduciary's Guide and an Investor's Guide for investors. The Fiduciary's Guide would provide recommendations to individuals charged with evaluating the appropriateness of hedge funds as a component of an investment portfolio. The Investor's Guide would provide recommendations to those charged with executing and administering a hedge fund program once a hedge fund had been added to the investment portfolio. "We must implement best practices and continually seek to strengthen our market and regulatory practices," Mr. Paulson said. The advisory groups, which were commissioned in September to make recommendations to the President's Working Group on Financial Markets, outlined steps for hedge funds to improve their operating practices in areas such as disclosure, valuation of assets, risk management and preventing conflicts of interest.

Latest News

Ex-Edward Jones advisor gets three-year prison sentence for stealing from widow
Ex-Edward Jones advisor gets three-year prison sentence for stealing from widow

John S. Winslow, 57, was indicted just over a year ago for his scheme to steal from an elderly client.

Vestmark, Hamachi push AI further for advisor portfolio intelligence
Vestmark, Hamachi push AI further for advisor portfolio intelligence

Hamachi's new model portfolio partnership and an industry-first solution from Vestmark join the growing wave of AI tools for wealth managers.

Advisor moves: Cetera's enterprise channel draws experienced Osaic duo in California
Advisor moves: Cetera's enterprise channel draws experienced Osaic duo in California

Meanwhile, LPL attracted a five-advisor team managing $380 million in Kansas, while a veteran with stripes from Morgan Stanley, UBS, and Fidelity has joined Prime Capital Financial.

Dynasty CEO teases 'Virtual Shirl' as RIA execs debate AI's workforce impact
Dynasty CEO teases 'Virtual Shirl' as RIA execs debate AI's workforce impact

At Goldman Sachs’ RIA conference, Dynasty’s Shirl Penney said an AI clone trained on his emails and speeches could be the first of “hundreds of digital employees.”

Captrust adds $1.25B Pennsylvania firm in latest push into private wealth
Captrust adds $1.25B Pennsylvania firm in latest push into private wealth

The top-ranked RIA by total AUM continues to scale its wealth management arm, bringing its Pennsylvania presence to five offices.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline