Funds standard board adds risk information to its toolbox

The Hedge Fund Standards Board (HFSB) has become co-chair of the Open Protocol Working Group, which collects risk information of hedge funds.

As part of the move the Open Protocol template will be added to the HFSB toolbox, which also includes the cyber security memo, administrator transparency reporting and the standardised board agenda.

The Open Protocol template aims to standardise the representation of risk information of hedge funds and other types of investment funds.

Funds with over $1 trillion in assets under management currently use the template.

“Better risk disclosure by investment funds has been a priority for both investors and regulators in recent years,” said Dame Amelia Fawcett, chairman of the HFSB.

“Open Protocol allows investors to harness data with aggregate risk exposures, while managers can streamline their own reporting to investors.”

Initially developed in 2011, Open Protocol was designed to improve alternative investment fund transparency and aid investors in aggregating their exposure across funds.

Albourne Partners, along with the HFSB, will co-chair the working group.

“We are delighted that Open Protocol has found a home with the HFSB,” said Simon Ruddick, founder of Albourne Partners and trustee of the HFSB.

“The HFSB provides a strong platform to take the work forward and is well-positioned to share the working group’s expertise on risk aggregation with the regulatory community, as well as help their efforts in addressing potential broader systemic concerns.”