Hedge funds bolster self-regulation drive

LONDON (Reuters) - The Hedge Fund Standards Board, the body set up to develop voluntary standards in the industry, said on Wednesday it now represents about half of hedge fund assets in Europe.

The announcement comes as hedge funds attempt to head off tougher regulation in the wake of turmoil in the global financial system.

The industry has come under intense scrutiny, most notably for the impact of short-selling employed by many managers. In September, regulators in the U.S. and Europe imposed a temporary ban on shorting financial stocks.

Ten new signatories to the HFSB include Blackrock Investment Management UK, New Star Asset Management and Sabre Fund Management. They join 14 existing members including Man Group Plc (EMG.L), the world's largest hedge fund manager, GLG Partners (GLG.N) and Marshall Wace.

Antonio Borges, chairman of the HFSB, said: "At a time when the activities of hedge funds are under such intense scrutiny, it is more important than ever that the industry demonstrates it is living up to its responsibilities by adhering to the best practice standards."

(Reporting by James Molony; Editing by Paul Bolding)