AIMA

AIMA UK Treasury White Paper statement

The Treasury’s White Paper on ‘Reforming financial markets’ is almost exclusively about reforming regulation of the UK banking system, with only a very short section on the hedge fund industry. However, that section is very helpful both in terms of tone and content and we are glad to welcome it.

The Treasury is quite right to stress that the UK hedge fund industry is already regulated, and that the UK regulatory regime ‘is among the most advanced in the world’.

We agree that enhanced disclosure requirements for hedge fund managers are desirable in the interests of gathering systemically relevant information to establish systemic risks. In fact, in our policy platform statement of 24th February 2009, we welcomed the principle of transparency in this respect, of the disclosure by managers to their regulator of systemically relevant information.

We are working with the Government and the FSA on the ‘system of enhanced surveillance that can gather relevant and timely information’ that this would require and hope that our cooperation is helpful on this matter.

Finally, we are pleased that the Treasury has reiterated its position in respect of the European Commission’s draft directive on Alternative Investment Fund Managers – ‘we believe that the proposal, which was produced in a very short time and with no public consultation, requires significant improvement’. We also welcome the UK Government’s intention to ‘engage positively in the EU debate with the aim of developing a directive that achieves the necessary improvements in the EU regulatory framework, without imposing unnecessary burdens'.

Andrew Baker, CEO, London, 8th July 2009