Welcome to the International Association of Hedge Funds Professionals (IAHFP)
During the financial crisis of 2007–2008, there was disastrous performance of the most highly regulated market participants. It is interesting that despite the above, hedge funds continue to be targeted as main culpable actors contributing to the crisis.
According to the media, hedge funds are secretive, unregulated, or able to escape regulation. In fact, numerous laws and regulations apply to hedge funds.
In the EU, the Alternative Investment Fund Managers Directive (AIFMD) covers Alternative Investment Fund Managers (AIFMs) and the distribution of Alternative Investment Funds (AIFs) within the EU. The directive introduces strict rules for risk management and regulatory reporting. It requires three separate functions (portfolio function, risk management function and valuation function).
In the USA, some of the regulators that oversee hedge funds are the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the U.S. Department of the Treasury, the Financial Stability Oversight Council (FSOC), the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), the National Futures Association (NFA), the Financial Industry Regulatory Authority (FINRA).
Some of the U.S. regulations that affect hedge funds are the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, the Investment Advisers Act of 1940, the Sarbanes Oxley Act of 2002, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the Regulation D, the JOBS Act of 2012, and many other rules and regulations.
Some important fraud cases, including the fraud confessed by former securities regulator Bernard Madoff, lead to the conclusion that we will have more regulations and more tasks for the risk and compliance function. Of course, Madoff did not run a hedge fund.
Risk and compliance officers work hard to ensure compliance with rules covering adviser registration, investor certifications, reporting, expanded disclosure requirements, shorting, arbitrage, leverage, conflicts of interest, new definitions for accredited investors, etc.
You are a risk and compliance officer working for hedge funds, or perhaps a consultant or an analyst. You work for a team that provides market with liquidity, and investors with a wide choice of strategies to meet their investment objectives. Your fund has the ability to generate positive returns in both rising and falling markets, and gives investors opportunities for absolute returns, skill-based strategies and diversification.
We live in a secretive environment, because many copy our strategies and positions, but we have to know each other better, and to ensure that decision makers understand better what we do.
Standard Membership to the International Association of Hedge Funds Professionals (IAHFP) is free. At every stage of your career, our community provides training, certification programs, resources, updates, networking and services you can use.
President of the International Association of Hedge Funds Professionals (IAHFP)
1200 G Street NW Suite 800,
Washington DC 20005, USA
Tel: (202) 449-9750
HQ: 1220 N. Market Street Suite 804,
Wilmington DE 19801, USA
Tel: (302) 342-8828