Thu, Jun 21, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

AIMA Singapore on Dodd-Frank Bill: chief concerns is bill that would tax larger US hedge fund managers to finance costs of legislation

Wednesday, June 30, 2010
Opalesque Industry Update – The Singapore Branch of the Alternative Investment Management Association (“AIMA”), the industry trade association for hedge funds, sees the agreement finalised last Friday by U.S. legislators on financial reform, the Dodd-Frank Bill, as an important milestone in the regulation of the U.S. financial services industry.

The agreement finalised last Friday by U.S. legislators included provisions relating to the registration of hedge fund managers and the periodic reporting by managers to supervisors in the interests of improving their ability to assess financial stability. The agreement also touched on the continued involvement and limited sponsorship of hedge fund activities by traditional financial institutions, pursuant to the revised “Volcker Rule.”

However, parts of the Dodd-Frank Bill also included concerns on imposing taxes on larger US hedge fund managers to finance the estimated costs of this legislation.

Todd Groome, Chairman of the Alternative Investment Fund Managers Association, a trade body representing hedge fund managers globally, said: “While some details and definitions remain to be clarified, AIMA supports those parts of the bill relating to the registration of hedge fund managers and the periodic reporting by managers to supervisors in the interests of improving their ability to assess financial stability. We also welcome the revised Volcker Rule.”

Todd added: “AIMA is, however, concerned with parts of the Dodd-Frank Bill, and we will seek to work with US regulators and the to be formed Financial Stability Oversight Council to address areas of the legislation in order to clarify the application of certain provisions and to mitigate provisions we believe are unfair or inappropriate to our members and the industry. Chief among these concerns, this bill would tax larger US hedge fund managers to finance the estimated costs of this legislation, despite the fact that no hedge fund received public funds or caused any financial stress to a banking institution or other counterparty during the crisis.”

Michael Coleman, the Chairman of the Singapore branch of AIMA, commented: “This piece of legislation, if passed, will represent a milestone in the global system of supervision for the financial services industry. The revised “Volcker Rule” is welcomed by many as it to allow banks and other financial institutions to invest up to a certain limit in hedge funds. This will be positive for the Singapore hedge fund industry as it removes the initial uncertainty surrounding the investment banks from running hedge funds and possibly prevent a fallout of investment banks having to liquidate these often highly profitable businesses.”

Ho Han Ming, the Vice-chairman of the Singapore branch of AIMA, added: “There have been various regulatory proposals pertaining to the hedge fund industry globally. In Singapore we have regulatory proposals to adopt a multi-tiered fund management category for managers based on their client profile as well as total assets under management. Each category of fund managers will have varying regulatory requirements tailored and adopted for relevance to their business models. In Europe, the Alternative Investment Fund Manager Directive (“AIFMD”) is undergoing intense debate and discussion prior of it being passed as legislation. And now we have the latest agreement by U.S. legislators on financial reform.”

“As such, on a global basis, the pace of regulatory reform for the hedge fund industry is gaining further momentum and does not seem to display any sign of slowing down. The common objective for the regulators is undoubtedly, to support financial stability and minimize systemic risks in the global financial system. However, we also urge policymakers to avoid instituting onerous and sweeping "one size fits all" measures which might potentially result in the fragmentation of the hedge fund industry along regional blocs or national lines.”


As the only truly representative global hedge fund association, AIMA, the Alternative Investment Management Association, has more than 1,100 corporate members worldwide, based in 40 countries. www.aima.org


Bg

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. Paper: The performance of stocks actively pitched by hedge funds[more]

    Using a novel dataset drawn from investment conferences from 2008 to 2013, I show that hedge funds take advantage of the publicity of these conferences to strategically release their book information to drive market demand. Specifically, hedge funds sell pitched stocks after the conferences to ta

  2. North America - US fundraising for special purpose acquisition vehicles hits record this year[more]

    From AFR.com: Special purpose acquisition vehicles (spacs) are hitting the US market at the fastest rate on record, attracting the likes of Goldman Sachs and hedge fund investor Daniel Loeb for the two largest such deals in 2018. Spacs have raised $US4.5bn so far in 2018, the largest amount fo

  3. Investing - Man Group and AQR try to take aim at private equity industry, Hedge funds poised to be winners in AT&T-Time Warner deal[more]

    Man Group and AQR try to take aim at private equity industry From FT.com: The popularity of private equity investments has prompted asset managers such as Man Group and AQR to devise strategies that aim to replicate PE returns but at a much lower cost to investors. Both companies a

  4. News Briefs: David Stemerman's hedge fund holdings shrank before his run for governor, nvestment manager TSW triggers succession plan, Alan Howard joins Peter Thiel investing in Cologne-based fintech startup[more]

    David Stemerman's hedge fund holdings shrank before his run for governor But the U.S. holdings of Stemerman's Greenwich hedge fund, Conatus Capital, shrank from $2.6 billion at the apex to just over $1 billion before he announced his move into politics. (Hartford Courant) Inv

  5. British Empire: Pershing's 23% discount 'unsustainable'[more]

    From Citywire: The wide discount on Pershing Square Holdings (PSH) is 'unsustainable' and puts star hedge fund manager Bill Ackman under pressure, says British Empire (BTEM). Pershing is the third largest holding in the £850 million British Empire trust, managed by Joe Bauernfreund, which sp