On October 11, the UK Hedge Fund Working Group announced a consultation on its proposals for a voluntary code for the UK hedge fund industry. The proposals include improved transparency in respect of risk, asset valuations and trading strategies.

The proposed code also asks hedge fund managers to stress-test their holdings and to provide information on risk controls to investors and lenders.

The Working Group was established in June by 13 hedge funds, as described in the June 22, 2007 edition of Corporate and Financial Weekly Digest, and is chaired by Sir Andrew Large. Sir Andrew is a former Deputy Governor of the Bank of England (2002-2006) and former Chairman of the precursor of the FSA, the Securities and Investments Board (1992-1997).

The deadline for responses is December 14.  www.hfwg.co.uk/?section=10365