A recently formed group, the New York Hedge Fund Roundtable, aims to improve practices in the industry and, in doing so, avert further regulation. Founded by Stanley Goldstein, the Roundtable aspires to "initiate best practices and knowledge transfer to the broader hedge fund world, allowing members to leverage peer information exchange and positively affecting both the profession and others."
Voluntary efforts by the industry to promote best practices can work, but the time is now to take real action to preempt newly-empowered regulators. The Roundtable might be a part of the solution, but a more codified approach to self regulation, like that promoted by the Hedge Fund Standards Board in the UK, would be a more effective mechanism.
See the Reuters story about the New York Hedge Fund Roundtable.