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Kathleen Casey Beverly Chandler, Opalesque London:

AIMA, the hedge fund industry association, has published an enhanced statement of policy principles, in a paper entitled 'Regulating Capital Markets: AIMA’s Policy Principles’.

The paper updates the 2009 AIMA Policy Platform, in which AIMA offered its support for improved transparency, unified global standards, manager authorisation and supervision, aggregated short position disclosure to regulators and new policies to reduce settlement failure.

The association describes the enhanced principles as enshrining AIMA’s core set of beliefs in the broad areas of investor protection, regulatory consistency, systemic risk and market integrity.

AIMA’s principles for improving investor protection include robust rules around the segregation and protection of investor assets and collateral and a call for regulation that reflects the differentiation between retail and professional investors.

On regulatory consistency, AIMA says that policymakers globally should continue to seek a co-ordinated international framework which preserves the cross-border nature of financial markets. In the paper, AIMA also warns about the dangers of extraterritoriality and regulatory overlap, which it says can lead to market fragmentation and regulatory arbitrage.

AIMA’s principles for understanding and mitigating systemic risk include the maintenance of a diversity of market participants and i......................

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