The Alternative Investment Management Association (AIMA), the global representative body for alternative asset managers, has launched a set of Due Diligence Questionnaires (DDQs) for hedge fund directors.
There are three versions, one for investors, one for managers and one for fund boards. The investor version contains questions about the experience, background, capacity and independence of a director. It also poses a number of questions about the individual director’s relationship to the fund and the fund’s board of directors. The questionnaire is designed to be used by investors on its own or in conjunction with the DDQ for boards of directors.
The manager version is designed for investment managers seeking one or more new directors for a fund. It too contains questions about the experience, background, capacity and independence of a director and assumes the director has not yet joined the board.
The DDQ for fund boards focuses on the activities of the board as a whole and the board’s interactions with investment managers and service providers. It is designed to be completed by the board as a whole and signed off by a single authorised director.
The new DDQs are complemented by AIMA’s Fund Directors’ Guide, which was published last year.