28/06/2010 Author: Shannon Hawthorne

Aima voices support for US financial reform

"The agreement on Friday by US legislators on financial reform, the Dodd-Frank Bill, is a very significant step in the evolving and broader international regulatory framework., Todd Groome, chairman of the global associated, said in a statement released today. “This is a landmark piece of legislation that, once passed, will represent an important part of the global system of supervision for the financial services industry.”

Groome further expressed the association’s support of the parts of the bill relating to the registration of hedge fund managers as well as the requirement for regular reporting by managers to supervisors.

“Through a more informed supervisory relationship, we expect supervisors and other public authorities to obtain a better understanding of our industry, as we contribute to their efforts to identify market stresses and vulnerabilities,” he said.

He did, however, reveal that Aima is “concerned with parts of the Dodd-Frank Bill” and will be seeking to work alongside US regulators in order to address areas of the legislation it feels may be unfair to the alternative investment industry.

“Chief among these concerns, this bill would tax larger US hedge fund managers to finance the estimated costs of this legislation, despite the fact that no hedge fund received public funds or caused any financial stress to a banking institution or other counterparty during the crisis,” he said.

He continued: “The inclusion of hedge funds in this financial tax suggests that our industry has been singled out for more onerous treatment.”