The AMF releases the report by the working group set up to assess France's framework for funds of hedge funds and to propose potential avenues of improvement. The group recommends moving from a regulatory approach in which the eligibility of underlying funds is determined on the basis of binary ("yes/no") eligibility criteria to a framework founded on principles covering the key operational and organisational procedures of target hedge funds, their legal status, rules for segregating and valuing assets, and external controls.
A natural consequence of this approach must be to capitalise on the contribution made by FoHF programmes of operations approved by the AMF and to establish a solid due diligence framework for fund managers. For this reason, one of the challenges is to ensure a secure and effective process for selecting and monitoring underlying based on a qualitative and quantitative analysis of fund specifications and risk exposure.
Deadline for consultation is 19 November 2007
Press release
Report
© AMF - Autorité des Marchés Financiers
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