TORONTO (HedgeWorld.com)–Following the first year of its existence, the Alternative Investment Management Association’s Canadian chapter is issuing its own guide to the sound hedge fund practices.

The Guide to Sound Practices for Canadian Hedge Fund Managers is being distributed through the chapter’s web site, www.aima-canada.org. Officials hope that institutional investors, regulatory authorities, educational institutions and journalists will use the document.

The Canadian hedge fund industry totals more than C$10 billion (US$7.6 billion) and is growing, according to Jim McGovern, the founding chairman of AIMA Canada.

“With the rapid growth of the hedge fund industry in recent years, it’s important for new entrants to establish their organizations as viable business entities,” Mr. McGovern said in a statement. “This guide is designed to help them manage the business risks involved at the start of a business and throughout its life.”

The publication follows the release of a similar guide put together by European AIMA members in 2002.

In Canada, a working group including representatives from Toronto-based firms Abria Financial Group, Arrow Hedge Partners Inc., Hillsdale Investment Management Inc., Maple Securities Canada Limited, RBC Dominion Securities Inc. and Torys LLP, compiled the guidelines. AIMA Canada totals 52 corporate members.

SBarreto@HedgeWorld.com