WEST PALM BEACH, FL (HEDGECO.NET) – The Center for Financial Market Integrity has called on managers who do business with unregulated hedge funds to adopt a code of conduct in line with therecommendations of the CFA Institute. The Institute will focus on research and policy impacting the financial markets as well as the hedge fund industry. According to CFA recommendations,unregistered hedge fund managers are urged to implement policies – �to endure fair dealing and integrity and to promote self regulation in this dynamic sector.�
According to Kurt Schacht, the CFA�s first executive director, the final document will be prepared by year�s end following a general comment stage for the public. Schacht said, �This is the beginning of a process, a consultation paper, it is good for firms without a code and good for firms with a code and seek to update it.� He added, �Clients come first, clients need to know fully and fairly about conflicts of interest, risks and fees.�
According to Schacht, the new code includes investment policies, strategies, trading compliance as well as performance evaluation. In light of the new SEC hedge fund regulation laws, hedge fund industry participants have stressed on the need for increased integrity for the good of the hedge fund industry as a whole.
Alan Brown, chief investment officer at State Street Global Advisors, and a member of the advisory council said, �Our job is to promote and increase voluntary engagement, espouse principles not rules and put the client�s interest first.� He added, �We all benefit if the industry is seen as having integrity.� CFA will maintain administrative offices in New York, London, Hong Kong and Charlottesville.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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