CESR consultation on the criteria of hedge fund indices

26 October 2006

CESR published an Issues Paper on hedge fund indices to be classified as financial indices for the purpose of UCITS and requests additional input into the debate on eligible assets under the UCITS Directive in relation to the inclusion of hedge fund indices, in particular. A consultation document setting out CESR’s possible preliminary position will be published in February 2007.

CESR is willing to develop dialogue in particular on the material biases generally thought to affect hedge fund indices and seeks views of the impact of potential ‘database biases’ and ‘index biases’, and seeks to explore what might represent an ‘adequate benchmark’.

Furthermore, CESR asks views in relation to whether hedge fund indices can qualify as ‘financial indices’ and if CESR might develop Level 3 measures regarding compliance with the obligations in relation to ‘sufficient diversification’.

Press release
Consultation paper

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