Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013

2311

Aima and CBI react to Turner Review

RELATED TOPICS​

Lord Turner has published his review of financial regulation, stating that regulators and central banks need to gather better macro-prudential information on hedge fund activities.

Lord Turner has published his review of financial regulation, stating that regulators and central banks need to gather better macro-prudential information on hedge fund activities.

Andrew Baker, chief executive of the Alternative Investment Management Association, says he ‘completely supports’ this proposal.

‘In fact we called, in our new policy platform of the 24 February, for the disclosure of systemically significant information by hedge fund managers to their national regulators (not all assets are managed in a collective fund structure). We also called for a global manager authorisation and supervision template on the FSA model. Aima took the lead on behalf of the hedge fund industry globally in these respects,’ Baker states.

The review points out that hedge fund leverage ‘is typically well below that of banks – about two to three on average’ compared with levels of up to 50 times with some of the banks; and that ‘hedge funds in general are not today bank-like in their activities’.

‘Given those qualifications, we do appreciate why in the interests of financial stability the review says that regulators need the power to apply appropriate prudential regulation to hedge funds if they judge that their activities have become bank-like in importance,’ Baker adds.

John Cridland, deputy director-general of the Confederation of British Industry, says: ‘Adair Turner (pictured) has come up with targeted proposals that deal with specific failings and risk to the system as a whole, rather than responding to the wilder calls for action against banks. His dispassionate, forensic approach has much to recommend it. A rush to legislation risked a repeat of a Sarbanes-Oxley type over-reaction, which would simply have compounded the effects of the recession.’
 
However, he says the CBI is cautious about the review’s proposals on liquidity and product regulation.

‘Rushing ahead with requirements for bank liquidity could put the UK out of step with other countries and force firms to manage their reserves on a country-by-country basis, which would be a blow to the UK’s competitiveness,’ Cridland says.

Latest News

Global index revenues increased 9.3 per cent in 2023, totalling a record USD5.8 billion, according..
Octopus Investments (Octopus) has announced it has launched a Natural Capital Strategy...
Research firm focused on Alternative UCITS funds, Kepler Absolute Hedge, has published its Market Intelligence..

Related Articles

Trends
The trend to buyout among the UK’s smaller defined benefit (DB) schemes continues with a slew of new sub GBP100 million deals announced this month alone...
The trend to buyout among the UK’s smaller defined benefit (DB) schemes continues with a slew of new sub GBP100..
Different flavours
In what is believed to be the first survey of its kind in the UK market, Nedgroup Investments, the investment-led, multi-boutique global asset manager with over USD20 billion under management, recently undertook a survey with 204 UK investment professionals, seeking insights into their perceptions and attitudes towards boutique asset managers...
In what is believed to be the first survey of its kind in the UK market, Nedgroup Investments, the investment-led,..
UK map
UK local government pension schemes (LGPS) are leading the charge on investment in private markets issuing tenders set to be worth billions of pounds in the coming years...
UK local government pension schemes (LGPS) are leading the charge on investment in private markets issuing tenders set to be..
The trend of private equity firms acquiring businesses in the professional services sector continues with CVC Capital Partners eyeing a possible buyout of EY’s Italian consulting branch...
The trend of private equity firms acquiring businesses in the professional services sector continues with CVC Capital Partners eyeing a..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by