MFA Releases Sound Practices for Hedge Fund Managers

Abstract

The Managed Funds Association released the MFA's 2005 Sound Practices for Hedge Fund Managers on August 2, 2005. An updated and expanded version of the 2003 release, the 2005 Sound Practices is intended to provide a framework of internal policies, practices, and controls. In this latest edition, the MFA includes updated chapters on internal trading controls, responsibilities to investors, valuation, risk controls, regulatory controls, transactional practices, and business continuity and disaster recovery. Furthermore, the MFA added two appendices to provide a checklist of items that a hedge fund manager may wish to consider in developing its own compliance policies and procedures and code of ethics.