The Dubai Financial Services Authority has issued a hedge fund code of practice, the first of its kind to be issued by any regulator. It sets out best practice standards for operators of hedge funds in the Dubai International Financial Centre.

The move comes in the wake of enhanced industry and regulatory focus on hedge funds and reflects the DFSA’s commitment to risk-based regulation, says the regulator.

The code is based on nine high-level principles covering key operational, management and market-related risks, particularly in areas such as valuation of assets, back office functions and exposure to market risks.