Aima's chief executive Andrew Baker says: 'Aima is dealing with policy makers and regulators at a national, European and international level on the future regulatory framework of the hedge fund industry. While we do welcome this initiative by the European Commission, the current problems are global and therefore we believe that ultimately, a coherent, global response is needed.' 

Baker says the Commission is right to address areas of concern about the hedge fund industry.

He says many of the issues are not unique to hedge funds and should not be looked at in isolation. 

He believes it is important to stress that the hedge fund industry in Europe is currently regulated and that regulatory framework has shown itself to be robust in very difficult market conditions. 

'The hedge fund industry in Europe and elsewhere has been hit very hard by the current crisis, but has responded in an orderly way and has not triggered any systemic risks. Hedge funds did not cause the present market turmoil and because they have an essential role in providing liquidity to the markets, are important in assisting any eventual recovery.

'We look forward to working with the Commission and other bodies to formulate a regulatory framework for the future and we believe the active cooperation and leadership we are providing on behalf of the industry will prove helpful,' Baker adds.