While the SEC and Congress consider regulating the hedge fund industry, the Managed Funds Association has issued guidelines for its member hedge fund managers. The guidelines suggest best practices for monitoring various types of risk; fair, consistent and verifiable valuation policies; compliance with regulation; and disaster recovery and business continuity practices.

The association posted its 124-page report, 2003 Sound Practices for Hedge Fund Managers, on its Web site and also delivered a copy to the SEC, which is finalizing a report that many of the managers in the $600 billion hedge fund industry fear could mean regulation. The SEC is expected to issue its report in the fall.

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