Regulatory Compliance Services

Hedge Fund Standards Board Compliance Service

The Hedge Fund Standards Board acts as custodian of the best practice standards published by the Hedge Fund Working Group on Tuesday 22nd January 2008 (see box below).

We, at Alpha Finance Advisors, believe that such standards are the best way to avoid the over penalizing regulation is being decreed by various regulators. On a more positive note, these are standards investors can rely on when evaluating an investment opportunity. In this period of uncertainty and surprises, it makes sense that investors focus their attention onto funds that go through the exercise and discipline of complying with strict professional standards. Alpha Finance Advisors can help you:

  • Put in place the processes and documents that would help you comply with the Standards — or explain the reasons for not complying.
  • And to turn this exercise into a positive set of documents that will enhance your profile with regard to investors and generally concerned third parties.

The Hedge Fund Standards Board defines its vocation as follows:

  • To be an independent body to be the guardian or custodian of best practice standards for the hedge fund industry. (Initially those best practice standards will be the standards set out in the Hedge Fund Working Group Final Report published in January 2008.)
  • Not to act as a regulator and not to interpose itself in any way between managers and their regulators.
  • To produce an annual report on conformity with the Standards by the industry.
  • Not act as a trade association, which is the role of AIMA.
  • To maintain a register of signatory firms available for public inspection.
  • To maintain Standards which in the judgement of the Board of Trustees:
    • are up to date;
    • are set at a level that reflects a high standard of conduct; o meet the aspirations and needs of the managers;
    • reflect the expectations of other stakeholders;
    • meet the requirements of public policy; o respond to changes in practice and expectation; and
    • are iterated and revised in the case of existing standards and so that new standards are developed where gaps are identified.
  • To maintain links with stakeholders, including managers, industry users and suppliers, trade associations (including AIMA), the FSA and other regulatory and supervisory bodies, both within and outside the UK.
  • To consider other best practice standards which may be published or promulgated in jurisdictions outside the UK.
  • To recognise that the industry operates on a global basis and evaluate opportunities for, and impediments to, convergence.
  • To retain a Board of Trustees who: o have skills and experience in a wide variety of sectors;
    • are of independent mind;
    • have skills and experience in governance matters;
    • are of high standing and capable of commanding respect;
    • have experience and understanding of the international dimension;
    • have a personal commitment to the success of and reputation of the industry;
    • are capable collectively of fulfilling the mandate.
  • To consult publicly with all relevant stakeholders on any proposed changes to the mandate.
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For further information please contact compliance.info@alphafinanceadvisors.net