MFA leads the industry in the development of standards of excellence. MFA's Sound Practices for Hedge Fund Managers is widely embraced by the alternative investment industry, policy makers, investors and industry watchers. MFA's industry-originated initiatives include the following:

• The 2007 edition of Sound Practices includes substantive updates on valuation, risk management and responsibilities to investors. It also introduces a model due diligence questionnaire designed for all types of investors, including high net worth individuals, pension fund managers and nonprofit organizations. The combination of the questionnaire and extensive recommendations in the document provides powerful tools as investors consider adding hedge funds to their portfolios.

• MFA is promoting the implementation of the recommendations of the President’s Working Group with respect to market-based principles for private pools of capital.
• MFA developed a due diligence questionnaire to provide guidance to pension fund managers in making investments in hedge funds.
• MFA is working with 11 other industry groups to develop guidance on the handling of material non-public information.
• MFA continues to work with major dealers on improving market practices in the derivatives marketplace.
• MFA introduced its groundbreaking "Preliminary Guidance for Hedge Funds and Hedge Fund Managers on Developing Anti-Money Laundering Programs" in April 2002 in response to the USA PATRIOT Act.