The Madoff scandal could have been averted had the US adopted a hedge fund registration and oversight regime similar to that in place in the UK, said Andrew Baker, CEO of the Alternative Investment Management Association to the UK House of Commons Treasury Committee on Tuesday, Jan. 27. The UK regulatory regime holds hedge fund managers to the same standards as other money managers, and provides for disclosure through funds' prime brokers.
Baker also said that greater transparency and restrictions on short selling could benefit the hedge fund industry's ailing image. He cautioned, however, adopting regulation for regulation's sake, and noted that hedge funds were victims rather than perpetrators of the financial crisis.
Full Story: A-Ok: UK Hedge Fund Regulations Work Just Fine, Thank You, Parliament Told, Pension & Investments (Jan. 30, 2009)
Full Story: AIMA Calls For Greater Transparency on Hedge Funds, Investment Week News (Jan. 29, 2009)