Wed, Dec 13, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

AIMA : Europe’s hedge fund industry does not pose systemic risk

Friday, February 26, 2010
Opalesque Industry Update: (Feb-25) The Alternative Investment Management Association (AIMA) – the global hedge fund industry association – has welcomed the hedge fund survey published by the UK’s Financial Services Authority which concluded that the industry does not pose a systemic risk and features relatively low levels of leverage.

Andrew Baker, Chief Executive Officer of AIMA, said: “As the UK is home to 80% of Europe’s hedge fund industry, these conclusions from the FSA are also true for the European hedge fund industry as a whole. These striking conclusions from the lead regulator for the industry in Europe are of clear relevance to the on-going debate about the Alternative Investment Fund Managers Directive in Europe. If the industry does not pose a systemic risk and features relatively low levels of leverage then additional regulation should not be disproportionate and punitive.”

The FSA survey found that major hedge funds “did not pose a potentially destabilising credit counterparty risk” and that the levels of leverage employed were “relatively low” which “suggests a contained level of risk”. The report concluded that its analysis “revealed no clear evidence to suggest that any individual fund posed a significant systemic risk to the financial system”.

Andrew Baker added: “We hope that policymakers in the European Union will heed this message from the lead regulator in Europe for the hedge fund industry. The FSA rigorously regulates hedge fund managers with its authorisation and on-going supervision regime. Their conclusions are timely and extremely valuable in the current debate.

“We note that the International Organization of Securities Commissions (IOSCO) commented when they released their systemic risk data template for hedge funds that while ‘the legislative process is ongoing in many jurisdictions’, regulators can ‘help to inform the relevant legislative debates’. Regulators who have developed experience and expertise of the hedge fund sector over many years are well placed to inform these debates.

“These conclusions from the FSA echo similar remarks by Jacques de Larosière and the European Central Bank, among others, who have questioned aspects of the draft Directive. AIMA has embraced the principle of transparency by the industry to the authorities and has engaged with policymakers to secure effective and proportionate regulation in this field.”


As the only truly representative global hedge fund association, AIMA, the Alternative Investment Management Association, has more than 1,100 corporate members (with over 4,500 individual contacts) worldwide, based in over 40 countries. www.aima.org.


Be

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Mediobanca acquires majority stakes in Swiss hedge fund[more]

    Komfie Manalo, Opalesque Asia: Listed diversified banking group Mediobanca SpA said it has acquired a majority stake in Geneva-based hedge fund firm RAM Active Investments SA (RAM AI), an active and alternative asset manager offering a range of act

  2. Launches - Ex-BlueCrest team to open over $200m hedge fund, Greg Coffey, a hedge fund star who retired at 41, is eyeing a comeback, Brevan Howard plans Greek funds as bond rally signals revival[more]

    Ex-BlueCrest team to open over $200m hedge fund From Bloomberg.com: A team of traders who left BlueCrest Capital Management earlier this year raised more than $200 million for their own hedge fund focused on Asian stocks, according to a person familiar with the matter. Ovata Capital Manag

  3. North America - Miami could attract hedge funds if SALT deductions axed[more]

    From Law360.com: For years, inertia has been Nitin Motwani's greatest foe in his attempts to lure hedge fund owners in the northeast to Miami, which he has pitched as a tropical low-tax paradise. But with the Republican tax bill proposing to eliminate deductions for state and local taxes, he's sensi

  4. Northleaf Capital Partners closes debut private credit fund on $670M[more]

    Bailey McCann, Opalesque New York: Northleaf Capital Partners has closed its debut private credit fund - Northleaf Private Credit I - on $670 million. The vehicle will invest in private credit transactions in Europe and North America, with a primary focus on lending to private equity-backed compa

  5. Opalesque Exclusive: Credit Suisse Asset Management's NEXT Investors leads $6M Series A round for LUX Technology and Services[more]

    Bailey McCann, Opalesque New York: Credit Suisse Asset Management's NEXT Investors has led a $6 million Series A funding round for LUX Technology and Services, a business and technology solutions provider for the alternative assets industry. The investment will be used to fuel growth of Trans