(CNS Business): No amount of new legislation and regulation can prevent another scandal on the scale of Madoff and instead hedge fund managers need to change the ‘don’t ask; don’t tell’ culture in which they operate and make whistle-blowing accepted practice if suspicion of wrong-doing is evident. This is according to Diana Henriques, senior financial writer with the New York Times and author of The Wizard of Lies, who gave a keynote address on the Bernie Madoff scandal at this year’s GAIM Ops Cayman conference held this week at The Ritz-Carlton.

The global hedge fund association, AIMA, has published detailed analysis of the European Commission’s draft implementing rules for the Alternative Investment Fund Managers Directive (AIFMD) which shows substantial policy differences between the Commission text and the advice provided by the European Securities and Markets Authority (ESMA). The Alternative Investment Management Association said that key areas where the Commission text diverges substantially from the ESMA advice include third country provisions, depositaries, delegation, leverage, own funds, professional indemnity insurance, appointment of prime brokers and calculation of assets under management.