MFA publishes 2003 sound practices for hedge fund managers

The Managed Funds Association (MFA), a voice for the hedge fund industry, has submitted its 2003 Sound Practices for Hedge Fund Managers to the Securities and Exchange Commission (SEC).

MFA president John Gaine said the 2003 Sound Practices contain additional topics of importance to the industry, including responsibilities to investors, valuation practices, and business continuity and disaster recovery capabilities. “The 2003 Sound Practices for Hedge Fund Managers contain recommendations that are intended to promote sound business practices in the hedge fund industry, and in doing so, enhance investor protection while contributing to market soundness.”

The recommendations contained in the 2003 Sound Practices are divided into: risk management and internal controls; responsibilities to investors; valuation policies and practices; risk monitoring; regulatory and documentation controls; and business continuity and disaster recovery.

MFA, based in Washington, DC, is the trade association representing professionals who specialise in alternative investment strategies, including hedge funds, funds of funds and futures funds. The first Sound Practices were published in February 2000.