The Hedge Fund Working Group, representing U.K. hedge fund executives, set out proposals Wednesday aimed to improve disclosure to investors and to establish best practices for the industry.
The group was set up in June in a preemptive move to sharpen management of hedge fund activities in Europe and address issues about financial stability raised recently by the G8 and the Financial Stability Forum.
The standards focus on valuation, risk management, disclosure, and governance, the group said.
It recommended that hedge fund managers disclose more information about themselves on their Web sites and that more information about the industry be made available collectively to the public.
The best practices, which were framed within the context of FSA principles, are voluntary and would operate on a "comply or explain" basis, the group said in a statement.
