Peter D. Astleford, Richard Frase, Andrew Hougie and Stuart Martin
This paper seeks to discuss the Guidance Note on disclosure of hedge fund side letters issued by the UK's Alternative Investment Management Association (AIMA) in September 2006.
Abstract
Purpose
This paper seeks to discuss the Guidance Note on disclosure of hedge fund side letters issued by the UK's Alternative Investment Management Association (AIMA) in September 2006.
Design/methodology/approach
Explains the meaning of “material” and “non‐material” and recommends immediate actions and ongoing disclosure policies for funds and fund managers.
Findings
Generally, it is more appropriate for disclosure to come from the fund than the fund manager. The manager has a degree of discretion as to what constitutes a “material” term. The new FSA approach does not prohibit the use of side letters.
Originality/value
An interpretation of the Guidance that will help fund managers fine‐tune their policies on use of side letters and disclosure of terms in those letters.
Details
Keywords
Andrew Hougie, Jessica Brescia, Alexandre Marion, Katharina Ebell, Thierry Hudsyn and Pascal Bouvy
The purpose of this paper is to describe and compare the different ways in which the shareholder disclosure requirements under the European Union Transparency Directive have been…
Abstract
Purpose
The purpose of this paper is to describe and compare the different ways in which the shareholder disclosure requirements under the European Union Transparency Directive have been implemented in the UK, France, and Germany. Belgium and Luxembourg have not yet implemented the Directive.
Design/methodology/approach
The paper explains the categories of entities that must comply with reporting requirements, disclosure/reporting thresholds, categories of direct and indirect shareholdings to which these thresholds apply, and the reporting required methods of notification.
Findings
The paper finds that the new European rules broaden the categories of entities that must comply with the reporting requirements. In the UK, France and Germany, thresholds are calculated based on all shares or other financial instruments to which voting rights are attached and indirect holdings must be aggregated and separately identified. Additionally, Germany imposes further notification requirements with respect to options.
Originality/value
The paper provides a useful comparative analysis of new shareholder disclosure requirements in the UK, France, and Germany.