Antonio Borges, chairman of the Hedge Fund Standards Board, said: “The Madoff scandal highlights just how important it is to have independence of process in relation to administration of the fund and the valuation process. It also highlights the need for robust governance practices and oversight via independent boards, which will challenge management procedures and behaviour.
“The hedge fund standards are designed to address exactly these issues to help prevent such events from happening, and to provide investors with the necessary transparency. This is why an increasing number of managers are signing up to the HFSB standards.”
