Financial News Online US- Dubai is bucking the trend around the world by drafting a code of conduct for hedge funds. Several jurisdictions have decided this could be seen as over-regulation.
Hedge fund assets in the Gulf states are small, but are expected to grow as managers in Europe and the US set their sights on wealthy individuals and large state-run investment funds in the region.
Dubai investment company Istithmar last month bought a 3% stake in hedge fund GLG and funds, including Man Group, have moved into the Dubai International Financial Centre.
Ian Johnston, managing director in policy and legal services at the Dubai Financial Services Authority, which has prepared the draft hedge fund code for consultation, said: “This is a code funds can implement in the way they see fit, rather than being prescriptive and rather than putting tougher legal requirements on them.â€Â
The draft code, which does not have the force of law, outlines best practice covering valuation, risk management and conflicts of interest.
The London-based Alternative Investment Management Association has in the past expressed caution regarding a broad international code of conduct.
