Bringing managers and investors together to set standards for the alternative investment industry

Regulatory Engagement

As a global standard-setter, the HFSB maintains active links with the supervisory community. The HFSB has participated in many regulatory consultations on key issues including alternative investment management regulation and financial stability.

In 2014, the HFSB was granted Affiliate Membership of the International Organization of Securities Commission (IOSCO), the international body that brings together the world’s securities regulators and is recognised as the global standard-setter for the securities sector. IOSCO develops, implements and promotes adherence to internationally recognized standards for securities regulation. It works intensively with the G20 and the Financial Stability Board (FSB) on the global regulatory reform agenda. The HFSB feeds into the IOSCO process, and actively participates in the Affiliate Members Consultative Committee (AMCC).

The HFSB has developed in depth expertise in many areas of asset management/hedge fund manager practice through its process of continuous improvement of the Hedge Fund Standards and through the HFSB Toolbox. Many of these areas, including handling of conflicts of interest, risk management, fund governance, cyber security and systemic stability, are also key priorities for the regulatory community. The HFSB actively shares its findings and standard-setting initiatives with global securities regulators, in an effort to inform them of the solutions that investors and managers have implemented to address industry issues.

Many individuals with leading securities regulators have made comments supporting the HFSB’s activities. A selection of these comments can be viewed here.