Hedge Fund Regulation: The President's Working Group Committees' Best Practices Reports: Raising the Bar But Missing Risks

19 Pages Posted: 8 Oct 2008 Last revised: 26 Nov 2008

John P. Hunt

University of California, Davis - School of Law

Date Written: June 2008

Abstract

Two private-sector committees empaneled by the President's Working Group on Financial Markets have released their reports on "best practices" in hedge fund regulation. The more notable of the two is the Asset Managers Committee report, which reflects the views of hedge-fund managers themselves. The report does go beyond previous compilations of best practices in some ways, such as by recommending enhanced disclosures of the types of assets that funds hold. But its discussion of counterparty risk management - the key to controlling any systemic risk that hedge funds may pose - is cursory and inadequate. A more detailed discussion of this issue seems important to any serious attempt to address the systemic risks posed by hedge funds.

Keywords: hedge funds, best practices, regulation, counterparty risk, systemic risk

JEL Classification: G18, G28

Suggested Citation

Hunt, John P., Hedge Fund Regulation: The President's Working Group Committees' Best Practices Reports: Raising the Bar But Missing Risks (June 2008). Available at SSRN: https://ssrn.com/abstract=1279870 or http://dx.doi.org/10.2139/ssrn.1279870

John P. Hunt (Contact Author)

University of California, Davis - School of Law ( email )

Martin Luther King, Jr. Hall
Davis, CA CA 95616-5201
United States
(530) 752-5052 (Phone)

HOME PAGE: http://ratingagencylawblog.wordpress.com/

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