The UK-based Alternative Investment Management Association, which represents the global hedge fund industry, has launched a transparency and reporting initiative as part of efforts to improve the sector's international supervisory framework.

AIMA has said that it is wholly supportive of the principle of full transparency and supervisory disclosure of systemically significant positions and risk exposure by hedge fund managers to the relevant national regulator.

The transparency initiative is one of a series of policy positions in AIMA’s new platform. Other developments include an aggregated short position disclosure regime to national regulators, support for new policies to reduce settlement failure, and a manager authorisation and supervision template based on procedures currently used by the UK’s Financial Services Authority.

The global financial crisis has prompted calls for greater regulation across the financial services sector and hedge funds have often been at the forefront of such criticism. At last weekend’s Berlin summit of European leaders, hedge funds were particularly singled out as in need of improved oversight.

AIMA is representing the global hedge fund industry in on-going international discussions about the future regulatory framework for the sector, notably with the organisations tasked by the G-20 to address the issue, such as IOSCO and the Financial Stability Forum.

Andrew Baker, chief executive of AIMA, said: "We want to dispel once and for all this misconception that the hedge fund industry is opaque and uncooperative.  That's why we are declaring our support for the principle of full transparency of systemically significant positions and risk exposures by hedge fund managers to their national regulators through a regular reporting framework.  We are confident that our members recognise that it is in everyone's best interests if we cooperate fully in the important on-going international efforts to examine and improve the supervisory framework of the future."

AIMA has 1200 member firms which are located across 43 countries; the association’s members manage more than 75 per cent of hedge fund assets globally.