AIMA Announces New Policy Platform Calling for Increased Transparency, Aggregated Short Position Disclosure, Reduction of Settlement Failures, Manager Supervision Template and Unified Global Standards
Hedge Fund Law Report
On February 24, 2009, the Alternative Investment Management Association (AIMA) announced its new policy platform, consisting of five new policies: (1) regular reporting and increased transparency of systemically significant positions and risk exposures by managers of large hedge funds to their national regulators (the regulator of the jurisdiction in which the manager is authorized and registered to operate); (2) an aggregated short position disclosure regime to national regulators; (3) support for new policies to reduce settlement failure (including in the area of naked short selling); (4) support for a global manager-authorization and supervision template based on the model of the UK Financial Services Authority (FSA); and (5) a call for unified global standards for the industry based on the convergence of existing industry standards work, such as that authored by AIMA, the Hedge Fund Standards Board, the International Organization of Securities Commissions, the President’s Working Group on Financial Markets and Managed Funds Association (MFA). In an extensive interview with the Hedge Fund Law Report, Andrew Baker, CEO of AIMA, offered additional detail on each of these policies. We offer salient points from that interview, and in addition discuss recent testimony by MFA head Richard Baker supporting the establishment of a systemic risk regulator.