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Matthias Knab reports live from Key Biscayne:
MFA announces internal growth plans to keep up with the pace of the alternatives industry
Jack Gaine, president of the Managed Funds Association, said the MFA will be focusing on the following areas:
- Systemic risk from back logs in swaps (a concern shared with the NY Fed, UK FSA)
- Risk Management
- Best practise standards
- ERISA/pension plan legislation. Under current rules, if a manager has 25% or more from public plans, he will become an Erisa fiduciary, having to comply with a very restrictive set of rules. At this time, also foreign benefit plans are included in this 25% calculation.
Interestingly, pressure is also coming from the pension plans that want to reform the rules, because these prevent them from investing in certain managers. Pension plans aspire to be at the same level as endowments, which can invest in alternatives in a more unrestricted manner.
The Erisa rules were basically introduced in the 1980’ies and were more directed at the futures industry at that time. One of the things the MFA is trying to achieve is to raise the arbitrary 25% level to 50%.
- Money laundering – the MFA was participating in a dialogue with the rulemakers, but rules haven’t yet come out.
Jack Gaine pointed to the Goldstein case which challenges the SEC registration, where a decision may come down any day.
At a press briefing, Jack Gaine said he has not met or spoken with Jim Chanos, ...................... To view our full article Click here
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