The Standards Board for Alternative Investments (SBAI), formerly known as the Hedge Fund Standards Board, is an international
standard-setting body for the
alternative investment
An alternative investment, also known as an alternative asset or alternative investment fund (AIF), is an investment in any asset class excluding stocks, bonds, and cash. The term is a relatively loose one and includes tangible assets such as ...
industry and sets the voluntary standard of best practices and practices endorsed by its members. Its primary role is to be the custodian of the Alternative Investment Standards (formerly known as "the Standards"), which are designed to create a "framework of transparency, integrity and good governance" in the way the hedge fund industry operates.
History
The SBAI originated in June 2007, when a group of leading
alternative investment
An alternative investment, also known as an alternative asset or alternative investment fund (AIF), is an investment in any asset class excluding stocks, bonds, and cash. The term is a relatively loose one and includes tangible assets such as ...
managers formed the Hedge Fund Working Group to develop industry standards in areas such as disclosure, valuation, risk management, governance, and shareholder conduct.
Founding firms included
Marshall Wace,
Cheyne Capital Management,
Man Group, and
CQS.
In January 2008, the working group was established as a nonprofit, called the Hedge Fund Standards Board (HFSB). Its primary purpose was to oversee what's called the "Standards" (now known as the "Alternative Investment Standards"). At its inception, the board had 14 leading hedge fund managers and was chaired by Sir
Andrew Large to develop the standards.
By 2016 it had almost 200 hedge fund managers and
institutional investors
An institutional investor is an entity which pools money to purchase securities, real property, and other investment assets or originate loans. Institutional investors include commercial banks, central banks, credit unions, government-linked c ...
as members; the total assets under management of all members was $3 trillion.
In 2014, the board became an affiliate member of the
International Organization of Securities Commissions (IOSCO) and in 2016 established mutual observer relationship with the
International Forum of Sovereign Wealth Funds.
In July 2011, Dame
Amelia Fawcett was appointed Chair of the SBAI, replacing Andrew Large.
In 2014, SBAI became an affiliate member of
International Organization of Securities Commissions (IOSCO) and in 2016 SBAI and
International Forum of Sovereign Wealth Funds (IFSWF) agreed to engage in mutual observership.
In September 2017, the board announced that it was changing its name from HFSB to the SBAI or Standards Board for Alternative Investments (SBAI) to "reflect the evolution of the industry". Specifically, it noted that "managers increasingly offer their investment strategies through a variety of vehicles beyond '
hedge funds', including
liquid alternatives, regulated funds,
co-investment vehicles, drawdown funds, and
managed accounts" while at the same time moving away from "hedge fund" as a term in order to "classify and integrate a diverse array of alternatives strategies by underlying asset class, return profile, market exposure, or liquidity".
See also
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Alternative investment
An alternative investment, also known as an alternative asset or alternative investment fund (AIF), is an investment in any asset class excluding stocks, bonds, and cash. The term is a relatively loose one and includes tangible assets such as ...
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International standard
international standard is a technical standard developed by one or more international standards organizations. International standards are available for consideration and use worldwide. The most prominent such organization is the International Org ...
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Standards organization
A standards organization, standards body, standards developing organization (SDO), or standards setting organization (SSO) is an organization whose primary function is developing, coordinating, promulgating, revising, amending, reissuing, interpr ...
References
External links
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{{authority control
Financial regulation
Financial services companies established in 2008
Hedge funds
International organisations based in London
Self-regulatory organizations
Standards organisations in the United Kingdom