The Alternative Investment Management Association, the industry body for the global hedge fund industry, has released its latest market ethics guidance note to members.

The Alternative Investment Management Association, the industry body for the global hedge fund industry, has released its latest market ethics guidance note to members.

The market ethics guidance note is aimed at front office, legal and compliance professionals in hedge fund management companies, and is an updated version of the guidance note published in October 2007.

It sets out how staff should operate in order to avoid market abuse and insider dealing risks.
 
The expansion by European hedge fund managers into business areas such as secondary market loan trading, private equity-style investing, and shareholder activism has resulted in increased scrutiny from the Financial Services Authority and other European regulators of how hedge fund managers use the information they acquire in the course of business activity.
 
The guidance note was developed by AIMA's Market Ethics Working Group, which was formed in February 2007 to help AIMA's members better understand the applicable rules in this area.

AIMA has also announced that its Hedge Fund Training Programme for hedge fund managers has received over 350 registrations since its launch in January 2008.
 
Andrew Baker, deputy chief executive of AIMA, says: 'AIMA fully supports the FSA's work in the area of market abuse and insider dealing. Our Hedge Fund Training Programme was developed in direct response to concerns highlighted by the FSA in its Market Watch last year, and AIMA has been working actively to increase our members' understanding and awareness of the relevant regulations. The latest market ethics guidance note is further demonstration of the value AIMA places on ensuring high industry standards.'