The Alternative Investment Management Association (AIMA) has reiterated its support for the registration of hedge fund managers in the United States (U.S.) and for the reporting of systemically relevant information by larger managers to national authorities in the interests of financial stability.
The AIMA press release comes as a bill that will require hedge fund managers operating in the U.S. to register with and be supervised by the Securities and Exchange Commission (SEC) won bi-partisan support from the House Financial Services Committee. The Private Fund Investment Advisers Registration Act 2009 will make the registration of hedge fund managers in the US mandatory for the first time.
Todd Groome, AIMA chairman said:
"Registration of hedge fund managers and the supervisory dialogue that this creates between managers and the authorities is valuable, but it is not a costless exercise. It is important that the reporting of market information in the interests of financial stability focuses on relevant information and is consistent with the supervisory capacity of national authorities; managers should not be burdened with expensive and unnecessary reporting requirements. If we ask even smaller managers to provide such information, we run the risk of overwhelming managers and supervisors. It is a question of striking the right balance."
AIMA is seeking a full exemption from registration in the U.S. for non-U.S. fund managers who are already registered in a relevant jurisdiction such as those based in OECD countries.
Mr Groome added:
"It is important to ensure that any new regulatory framework does not create unintended consequences, such as duplicative requirements or unnecessary additional costs on hedge fund managers. We look forward to continuing our dialogue with policymakers on possible revisions and further enhancements to the bill."
View AIMA reiterates support for registration of hedge fund managers in the US, 3 November 2009