Alternative Investment Management Association Singapore Branch

PRESS RELEASE FOR IMMEDIATE RELEASE

AIMA SINGAPORE RESPONDS TO THE LATEST AGREEMENT BY U.S. REGULATORS ON FINANCIAL REFORM, THE DODD-FRANK BILL
Singapore 30 June 2010: The Singapore Branch of the Alternative Investment Management Association (AIMA), the industry trade association for hedge funds, sees the agreement finalised last Friday by U.S. legislators on financial reform, the Dodd-Frank Bill, as an important milestone in the regulation of the U.S. financial services industry. The agreement finalised last Friday by U.S. legislators included provisions relating to the registration of hedge fund managers and the periodic reporting by managers to supervisors in the interests of improving their ability to assess financial stability. The agreement also touched on the continued involvement and limited sponsorship of hedge fund activities by traditional financial institutions, pursuant to the revised Volcker Rule. However, parts of the Dodd-Frank Bill also included concerns on imposing taxes on larger US hedge fund managers to finance the estimated costs of this legislation. Todd Groome, Chairman of the Alternative Investment Management Association, a trade body representing hedge fund managers globally, said: While some details and definitions remain to be clarified, AIMA supports those parts of the bill relating to the registration of hedge fund managers and the periodic reporting by managers to supervisors in the interests of improving their ability to assess financial stability. We also welcome the revised Volcker Rule. Todd added: AIMA is, however, concerned with parts of the Dodd-Frank Bill, and we will seek to work with US regulators and the to be formed Financial Stability Oversight Council to address areas of the legislation in order to clarify the application of certain provisions and to mitigate provisions we believe are unfair or inappropriate to our members and the industry. Chief among these concerns, this bill would tax larger US hedge fund managers to finance the estimated costs of this legislation, despite the fact that no hedge fund received public funds or caused any financial stress to a banking institution or other counterparty during the crisis. Michael Coleman, the Chairman of the Singapore branch of AIMA, commented: This piece of legislation, if passed, will represent a milestone in the global system of supervision for the financial services industry. The revised Volcker Rule is

Alternative Investment Management Association Singapore Branch

welcomed by many as it to allow banks and other financial institutions to invest up to a certain limit in hedge funds. This will be positive for the Singapore hedge fund industry as it removes the initial uncertainty surrounding the investment banks from running hedge funds and possibly prevent a fallout of investment banks having to liquidate these often highly profitable businesses. Ho Han Ming, the Vice-chairman of the Singapore branch of AIMA, added: There have been various regulatory proposals pertaining to the hedge fund industry globally. In Singapore we have regulatory proposals to adopt a multi-tiered fund management category for managers based on their client profile as well as total assets under management. Each category of fund managers will have varying regulatory requirements tailored and adopted for relevance to their business models. In Europe, the Alternative Investment Fund Manager Directive (AIFMD) is undergoing intense debate and discussion prior of it being passed as legislation. And now we have the latest agreement by U.S. legislators on financial reform. As such, on a global basis, the pace of regulatory reform for the hedge fund industry is gaining further momentum and does not seem to display any sign of slowing down. The common objective for the regulators is undoubtedly, to support financial stability and minimize systemic risks in the global financial system. However, we also urge policymakers to avoid instituting onerous and sweeping "one size fits all" measures which might potentially result in the fragmentation of the hedge fund industry along regional blocs or national lines. - Ends For media enquiries, please contact:
Michael Coleman Aisling Analytics +65 6238 0823 mike@aislinganalytics.com Ho Han Ming Clifford Chance +65 64102200 HanMing.Ho@CliffordChance.com Chua Ming Wang AIMA Singapore Manager +65 6225 4985 mwchua@aima.org

Editors Notes:
About AIMA

Alternative Investment Management Association Singapore Branch

As the only truly representative global hedge fund association, AIMA, the Alternative Investment Management Association, has more than 1,100 corporate members worldwide, based in 40 countries. AIMA Singapore has 63 corporate members and actively serves as a unified voice for the local industry, working closely with regulators and interested parties in order to promote the responsible use of alternative investment instruments. The branch was formed to support the strong growth in the alternative investment industry in Singapore Members include leading hedge fund managers, fund of hedge funds managers, prime brokers, legal and accounting firms and fund administrators. They all benefit from AIMAs active influence in policy development, its leadership in industry initiatives, including education and sound practice manuals and its excellent reputation with regulators worldwide. AIMA is a dynamic organization that reflects its members interests and provides them with a vibrant global network. AIMA is committed to developing industry skills and education standards and is a cofounder of the Chartered Alternative Investment Analyst designation (CAIA) the industrys first and only specialized educational standard for alternative investment specialists. For further information, please visit AIMAs website, www.aima.org.