AGL 40.75 Increased By ▲ 2.21 (5.73%)
AIRLINK 128.20 Decreased By ▼ -1.30 (-1%)
BOP 6.14 Increased By ▲ 0.53 (9.45%)
CNERGY 4.05 Increased By ▲ 0.19 (4.92%)
DCL 8.40 Decreased By ▼ -0.33 (-3.78%)
DFML 40.79 Decreased By ▼ -0.97 (-2.32%)
DGKC 87.40 Decreased By ▼ -0.90 (-1.02%)
FCCL 34.10 Decreased By ▼ -0.90 (-2.57%)
FFBL 66.10 Decreased By ▼ -1.25 (-1.86%)
FFL 10.53 Decreased By ▼ -0.08 (-0.75%)
HUBC 108.50 Decreased By ▼ -0.26 (-0.24%)
HUMNL 14.39 Decreased By ▼ -0.27 (-1.84%)
KEL 4.65 Decreased By ▼ -0.10 (-2.11%)
KOSM 7.20 Increased By ▲ 0.25 (3.6%)
MLCF 42.40 Increased By ▲ 0.75 (1.8%)
NBP 61.89 Increased By ▲ 2.29 (3.84%)
OGDC 179.46 Decreased By ▼ -3.54 (-1.93%)
PAEL 25.85 Decreased By ▼ -0.40 (-1.52%)
PIBTL 6.05 Increased By ▲ 0.08 (1.34%)
PPL 146.40 Decreased By ▼ -0.30 (-0.2%)
PRL 23.84 Increased By ▲ 0.23 (0.97%)
PTC 16.29 Decreased By ▼ -0.27 (-1.63%)
SEARL 70.00 Increased By ▲ 1.70 (2.49%)
TELE 7.29 Increased By ▲ 0.06 (0.83%)
TOMCL 36.08 Increased By ▲ 0.13 (0.36%)
TPLP 7.85 No Change ▼ 0.00 (0%)
TREET 15.34 Increased By ▲ 1.14 (8.03%)
TRG 50.40 Decreased By ▼ -0.05 (-0.1%)
UNITY 27.00 Increased By ▲ 0.25 (0.93%)
WTL 1.24 Increased By ▲ 0.03 (2.48%)
BR100 9,797 Decreased By -8.8 (-0.09%)
BR30 29,611 Decreased By -67.5 (-0.23%)
KSE100 92,077 Decreased By -226.9 (-0.25%)
KSE30 28,728 Decreased By -112 (-0.39%)

Hedge funds are largely succeeding in obtaining accurate valuations for their investments, even in the case of illiquid or complex securities, the UK's financial watchdog said on Tuesday.
Following a study looking at the valuation practices of hedge fund managers, the FSA "is about to write to the International Organisation of Securities Commissions (IOSCO) relaying what we have found to be good practice in this area", said Thomas Huertas, the FSA's director of wholesale firms at the Reuters Investment Banking Summit in London.
"We have found that third parties administrators can provide a level of protection, though there have been instances where the minimum standards have not been achieved."
The FSA in March obtained an undertaking from Jae Wook Oh, a former hedge fund investment manager at Regents Park Capital Management LLP (Regents Park) that he would avoid any controlled function in relation to regulated activities for three years.
"It appears that over a number of months in 2005 there was a discrepancy between the realisable value of certain investments and those valuations provided by Regents Park," the FSA said at the time.
While the large part of the industry was successful in valuing its investments, there were special difficulties in relation to some complex derivative products, Huertas said.
"For some complex illiquid instruments, finding a fair value is a difficult task, with a wide disparity between bid and ask and low levels of trading. In that case it's difficult to get an accurate price, so it's necessary to get an indicative quote from several parties."

Copyright Reuters, 2006

Comments

Comments are closed.