International

MFA continues to increase its advocacy and educational efforts outside of the U.S. as the alternative investment industry fosters a uniform global regulatory framework. MFA’s efforts include meetings with and outreach to non-U.S. regulators, policy makers and market participants to address regulatory and legislative initiatives that would affect the alternative investment industry.

In 2008, MFA entered into an alliance with its European counterpart, The Alternative Investment Management Association (AIMA). MFA and AIMA have established a framework for the development of a global voice for the hedge fund industry on issues of common interest such as an international convergence of sound practices and high standards of professional conduct.

MFA has also formed an International Affairs Advisory Committee, which engages in advocacy and educational efforts that focus on issues that affect access to markets and cross-border capital flows. Initiatives include meetings with international regulators and policy makers, participating in international conferences and meeting with international groups such as the International Monetary Fund and the World Bank.

Recent MFA initiatives on the international front have included the following:

6.22.2009		MFA Issued a Response to Today's Release of The IOSCO Technical Committee paper, Hedge Fund Oversight: Final Report
6.15.2009		MFA submitted a letter to the International Organization of Securities Commissions (IOSCO) in response to its Consultation Report on Unregulated Financial Markets and Products. In our letter, we assert that any regulatory measures that seek to affect the functioning of the CDS market and other OTC derivatives markets must be balanced against the significant benefits that these products bring to global capital markets and to the market participants who trade them. We agreed with IOSCO that the optimal framework to strike this balance is through industry initiatives, which are organized in coordination and cooperation with global regulators.
6.12.2009		MFA submitted a letter to the International Organization of Securities Commissions in response to its consultation report on “Policies on Direct Electronic Access” (DEA). In our letter, we request that any guidance issued by IOSCO on DEA include recommendations regarding market and intermediary confidentiality safeguards and controls to protect customer trade data and to assure investors that the recipients of such information would use it exclusively for regulatory purposes. We also recommend that markets and intermediaries should have flexibility in determining the appropriate method of regulation for each type of DEA depending upon their own regulatory and technical capabilities and legal requirements.
6.10.2009		MFA’s international perspective on regulatory reform necessitates education and advocacy not only with policy makers in the United States, but also with the G-20, the EU, the Financial Stability Board, the International Organization of Securities Commissions (IOSCO), as well as national agencies. MFA Members Only may click here view into recent events that MFA has undertaken in pursuing its overall international strategy. Additionally MFA Members Only may click here to read an extensive analysis of the EU Parliamentary elections (June 4-6) that MFA commissioned in conjunction with one of its consultants. Included therein are some of the next steps that will be undertaken in organizing the new Parliament and its Committees as well as the European Commission.
5.8.2009		MFA submitted a letter to the U.K. Financial Services Authority in response to its proposed short selling disclosure measures, recommending that short positions be privately reported to the FSA.
5.4.2009		MFA submitted comments to the IOSCO Technical Committee in response to its Consultation Report, Regulation of Short Selling. In the letter, MFA commends the Technical Committee’s four principles for the regulation of short selling and offers certain recommendations to improve market stability and investor confidence.
4.30.2009		MFA submitted a written response to the IOSCO Consultation Report on Hedge Funds Oversight. MFA’s comments focused on four key areas: discussing the importance of the hedge fund industry to capital markets; clarifying misconceptions about the industry contained in the Consultation Report; discussing key industry initiatives that help mitigate risk; and setting out MFA’s position on systemic and prudential regulatory reform.
4.29.2009		MFA Responds to European Commission's Proposed Directives for Alternative Investment Fund Managers.
4.2.2009		MFA espouses smart approach to regulatory reform as G-20 concludes
3.26.2009		MFA submits a letter to the Australian Treasury requesting they support legislative and regulatory relief to eliminate the uncertainties in the application of certain Australian tax laws as they apply to many foreign investment funds, including those managed by many MFA members. In the letter, MFA emphasized that these uncertainties potentially act as an ongoing impediment to foreign investment in Australian capital markets.
1.15.2009		Today, The Group of Thirty (G30) released a report entitled, Financial Reform: A Framework for Financial Stability. Click here for a list of recommendations from the G30 Report. The stated purposed of the G30 Report was to make recommendations on ways to redefine the scope of prudential regulation; reform the structure of prudential regulation; improve governance, risk management, regulatory policies and accounting practices and standards; and recommend improvements in transparency and financial infrastructure arrangements. The G30 Report specifically addresses hedge funds and includes recommendations on registration, reporting and disclosure. For larger funds, it suggests standards for capital, liquidity and risk management. The Report urges international consistency.
1.9.2009		MFA submitted a letter to the U.K. Financial Services Authority responding to its proposed temporary short selling measures. The FSA has proposed to allow its short selling ban to expire and extend short position disclosure requirements to June 30, 2009.
12.23.2008		MFA sent a letter to the IOSCO Technical Committee Short Selling Task Force providing comments to regulatory approaches to short selling. The focus of the Task Force is to develop principles for the regulation of short selling to establish a common international approach.
10.28.2008		MFA Hosts Forum with Mr. Tony Lomas, Administrator, Lehman Brothers International Europe (LBIE) Insolvency to Address MFA Members in New York. Click here for our news release.
10.14.2008		MFA and AIMA respond to Italian Finance Minister Giulio Tremonti remarks that Italy may push for the abolition of hedge funds.
10.13.2008		MFA sent a letter to the Governor of the Bank of England stating that MFA and its members are extremely concerned that the Administrators of LBIE are setting out on a proposed course of action that threatens to undermine market confidence and liquidity with consequential damage to both the alternative investment industry and the global capital markets. An MFA news release about the letter can be viewed here.
6.18.2008		MFA has returned from an historic trip to Tianjin, China. MFA and CME Group (CME), a Strategic Partner member, jointly arranged the trip to meet with Chinese government officials, policy makers and financial services representatives. On June 10 and 11, MFA and CME co-sponsored a conference with the Tianjin Municipal People’s Government and China Foreign Exchange Administration Magazine entitled, “Global Markets and the Role of Alternative Investments.”
5.29.2008		MFA submits a comment letter to the Canadian Securities Administrators on Canada’s registration reform proposal.