ITF research on hedge fund reporting

All asset managers registered with the Financial Conduct Authority (FCA) are required to produce a statement setting out how they with the Code, or, if they do not comply, explain their alternative strategy. The Code was developed in the wake of the financial crisis to encourage more responsible behaviour by institutional shareholders.

However, as part of its research into hedge fund activity around research corporate events, the ITF discovered 34 cases of funds using very similar or identical text to justify non-compliance. A number of these investors, such as Elliott Advisors, have played a significant role in seeking to restructure businesses in various countries.
The ITF has filed a complaint with the FCA, and also submitted its findings to the Financial Reporting Council, which has responsibility for the Stewardship Code.
Financial News: Hedge funds accused of non-compliance with FCA stewardship rules