The best practice standards have been designed so as to apply to fund managers solely in respect of their management activities in relation to hedge funds for which they act as the investment manager. They do not apply to other activities including, by way of example, management activities in relation to segregated accounts or fund of hedge funds although certain of the Standards might, with or without adaptation, be appropriate for hedge fund managers to utilise in carrying out those other activities.

HFSB would have no objection if a hedge fund manager, for the avoidance of any doubt, specified in its Disclosure Statement and on its website any areas of its business to which the standards are not applicable.

In circumstances where a manager carries out sub-advisory functions for a manager of a hedge fund or is appointed by the operator of a fund platform to manage a particular pool of assets, it is recognised that the manager's position vis-à-vis the fund governing body is likely to be less influential than is the case in a typical hedge fund structure where the manager is the directly appointed investment manager. Nevertheless, inasmuch as a particular standard requires the manager to do what it reasonably can to enable the fund governing body to achieve a particular outcome and in relation to any Standards which it is not authorised or able to conform with given the terms of its appointment or mandate, then the manager should still be able to comply with that standard if, in practice, it encourages the relevant pool operator or manager itself to adopt the standards.

Certain of the standards may also be capable of application to other areas of the asset management industry. If participants in those areas find any of the standards helpful and wish to adopt or adapt them for their circumstances then they are of course free to do so.