Two financial industry groups will soon issue a final joint report on best practices for hedge funds, Anthony Ryan, acting Treasury undersecretary for domestic finance, told a conference today in New York.
In September 2007, the PWG (Presidents Working Group on Financial Markets) facilitated the formation of two private-sector groups to develop voluntary industry best practices, the Asset Managers Committee and the Investors Committee, Mr. Ryan said at the Securities Industry and Financial Markets Associations annual conference.
In April of this year, the two groups issued draft best practices for hedge fund managers and for investors in pools, and they expect to issue finalized practices very soon, said Mr. Ryan. He would not elaborate.
Treasury Secretary Henry Paulson, who was scheduled to speak at the conference, cancelled on short notice (via a note on the Treasury's website Monday) because of meetings in Washington.
According to a conference attendee who asked not to be named, Mr. Paulsons top priority is to set up a team of managers who could implement the governments $700-billion rescue package, which involves buying illiquid mortgage-related assets. That might be one reason he cancelled his speaking engagement in New York.
We dont have months or years and so we are moving quickly and methodically to facilitate the necessary results, Mr. Ryan said, referring to the rescue package.
The Asset Managers Committee represents the alternative asset management community, while the Investors Committee represents endowments, foundations, corporate and public pension funds and investment consultants as well as other investors. The two groups draft is called Principles and Best Practices for Hedge Fund Investors.