The Alternative Investment Management Association (AIMA) has come out in support of a global approach to regulation of the hedge fund industry.

The Alternative Investment Management Association (AIMA) has come out in support of a global approach to regulation of the hedge fund industry.

Leaders from the G20 group of nations have recently been meeting in Washington and changes designed to bring greater transparency to the previously-secretive sector have reportedly been on their agenda.

In a statement, AIMA chairman Todd Groome said his organisation favoured "consistent and co-ordinated" regulations, adding: "While hedge funds are not themselves systemically important institutions, they can help to provide systemically relevant data reporting in the interests of financial stability."

He went on to comment that AIMA hopes EU politicians have been paying close attention to the G20's finance ministers and claimed a "well-balanced and consistent regulatory framework" must be put in place.

Last week, the body's chief executive Andrew Baker urged European lawmakers to reconsider the controversial Alternative Investment Fund Managers directive and warned against EU protectionism.