Hedge funds to discuss self-regulation
Industry aims for self-regulation to avoid problems encountered by private equity groups
The hedge fund industry has appointed former Bank of England deputy governor
Sir Andrew Lange to lead a study into a voluntary set of standards for the
industry.
The appointment by the world’s 13 largest hedge funds, which include Man
Group and GLG Partners, signals an attempt by the sector to pre-empt any
political interference in its affairs.
According to the FT a letter was sent out to hedge funds inviting
them to join a working group that will ‘evaluate areas which may require
strengthening and suggest solutions, which may include adherence to voluntary
standards’.
Hedge fund managers are believed to have become anxious about political
interference in their affairs following the assault on private equity by unions
and politicians. The move to self-regulation is an attempt to nip this sort of
situation in the bud.
Further reading:
Hedge funds slated over tax evasion
Hedge funds push for radical insolvency review