Bringing managers and investors together to set standards for the hedge fund industry

Financial Stability

The HFSB takes into account the issues of financial stability (alongside investor protection and market integrity) when updating the Hedge Fund Standards. In 2008, the Hedge Fund Working Group Final Report (which established the HFSB) highlighted the broader issues in relation to financial stability that needed to be better understood, including handling of situations of liquidity distress (the unwinding of concentrated positions). For example, the HFSB addressed handling of redemptions in situations of liquidity distress in a dedicated consultation to amend the Standards in 2009/2010 (CP1). The HFSB also actively engages in the global policy debate to help advance the thinking about how systemic risk concerns can be better understood and addressed.

Financial Stability Board (FSB) Financial Stability Board’s Consultative Document on Proposed Policy Recommendations to Address Structural Vulnerabilities from Asset Management Activities (06/2016)

Financial Stability Board’s Consultative Document on Assessment Methodology for Identifying NBNI G-SIFIs Strengthening Oversight and Regulation of Shadow Banking (01/2014)

Financial Stability Board’s Consultative Document on Strengthening Oversight and Regulation of Shadow Banking (11/2012)

European Commission European Commission’s Green Paper on Shadow Banking (03/2012)

UK Treasury UK Treasury Inquiry into Proposals for European Macro and Micro Prudential Financial Regulation (11/2009)

UK Treasury Committee call for evidence on the Banking Crisis (01/2009)

UK Financial Services Authority (FSA) FSA Consultation: A regulatory response to the global banking crisis (06/2009)