In an attempt to head off regulation, hedge funds in Europe are proposing that they will voluntarily become more transparent about their holdings, risk management, governance and valuation techniques, The Wall Street Journal reports.

Both the U.S. Treasury and a hedge fund advisory group created by the President’s Working Group on Financial Markets are carefully monitoring this latest development in an industry scarcely regulated. “Anytime a group of industry leaders steps up and takes on responsibility to help advance best practices, it’s of service and benefit to the marketplace,” said Eric Mindich, chairman of the advisory group and head of hedge fund Eton Park Capital Management.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.