AIMA responds warmly to G20 hedge fund stance
08 April 2009

Full Article Word Count: 911
Global hedge fund industry trade association AIMA has responded warmly to the outcome of the G20 Summit in London last week, which ended up taking a less aggressive stance towards hedge funds than many in the industry had feared.

Despite fears that the world leaders would sign up to some kind of regulatory crackdown on hedge funds as part of their efforts to overhaul the global system of financial supervision and strengthen financial stability, the G20 communiqué only made a general and ill-defined reference to hedge funds.

In the relevant passage, the leaders said they had agreed “to extend regulation and oversight to all systemically important financial institutions, instruments and markets”, adding that “this will include, for the first time, systemically important hedge funds”.

Although there is some considerable doubt as to what this will mean in practice – and it is far from clear...