Dubai FSA Hedge Funds Comment

Public Interest Comment on the Dubai Financial Services Authority’s Proposed Hedge Fund Code of Practice 1Consultation Paper No. 50 October 3, 2007 The Regulatory Studies Program (“RSP”) of the Mercatus Center at George Mason University is dedicated to advancing knowledge of the impact of regulation on society. As part of its mission, RSP conducts careful and independent analyses employing scholarship from law, economics, and related disciplines to assess rulemaking proposals from the perspective of the public interest. This Public Interest Comment (“Comment”) on Consultation Paper No. 50 of the Dubai Financial Services Authority (“DFSA”) does not represent the views of any particular affected party or special interest group, but is designed to evaluate the effect of the proposed rules on overall consumer welfare. On July 3, 2007, the DFSA issued Consultation Paper No. 50 (the “Consultation Paper”) 2seeking comment on the DFSA’s Proposed Hedge Fund Code of Practice (the “Code”). The Code was issued in July 2007, one year after Dubai’s Collective Investment Law and Collective Investment Regime (the “CIF Regime”) applicable to hedge funds became effective. The Code proposes a series of hedge fund best practices under nine general principles relating to issues such as what skills, resources, processes, and systems a hedge fund operator should have; portfolio risk management; valuation practices and policies; 3and conflicts of interest. ...