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

AssetMark's Talk Tracks AI gives advisors a script for client calls
AssetMark's Talk Tracks AI gives advisors a script for client calls

The new AI feature generates instant client portfolio talking points, slashing meeting prep time for advisors.

Behind the Great Wealth Transfer: Citizens bets on business owners
Behind the Great Wealth Transfer: Citizens bets on business owners

As Citizens expands its advisory footprint, the bank is also going after wealth trapped inside business ownership

Forbes and Shook pull the plug on rankings, events, in 2026
Forbes and Shook pull the plug on rankings, events, in 2026

The Forbes rankings are highly sought after by some advisors and firms for marketing purposes.

Advisor moves: Cresset enters Boca Raton with $4 billion UBS team addition
Advisor moves: Cresset enters Boca Raton with $4 billion UBS team addition

Meanwhile, an advisor tuck-in from Edward Jones expands Kestra's Washington, D.C.-area presence, and Janney deepens its Connecticut footprint with an experienced Wells Fargo advisor.

Kovack Financial Network launches private succession platform for advisors
Kovack Financial Network launches private succession platform for advisors

KFN Succession Center pairs advisors weighing retirement with buyers, as next-gen affordability keeps eroding industry-wide.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income