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Industry Updates

HFSB proposes toughening standards and announces new signatories

Wednesday, July 01, 2009 Share

Opalesque Industry Updates - The Hedge Fund Standards Board (HFSB) is proposing changes to its standards on fund administration and redemptions in the light of the financial crisis.

The proposed changes, which are subject to consultation with the industry, would involve introducing new standards requiring fund governing bodies to appoint an independent third party to administer the fund, prepare accounting records and carry out NAV calculations as well as having an independent custodian.

The proposed changes regarding redemptions would place more onerous disclosure requirements on managers regarding possible restrictions on withdrawals.

Antonio Borges, Chairman of the HFSB, said:

“The HFSB standards would already make it very difficult for a Madoff-type scandal to occur but we believe it is right to raise the bar higher in the light of recent events.

“These new standards would help to safeguard investors’ assets and also lead to improvements in the re...

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