Hedge Fund Working Group Issues Final Report

February 29, 2008
The UK Hedge Fund Working Group (“HFWG”) published its final Report on January 22, 2008. The Report sets out 28 best practice standards (“Standards”) for hedge fund managers, and follows the HFWG’s initial consultation paper issued in October 2007. The Standards are aimed at UK hedge fund managers and purport to apply to fund managers only in respect of hedge fund management activity. The Standards make clear that they do not apply to other activities including, for example, management of funds of hedge funds or segregated accounts. However, the HFWG acknowledges that certain parts of the Standards may be appropriate for hedge fund managers to utilize in carrying out their other activities. This update explains the Standards, their scope, and related compliance issues.