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Guidance

Art FA recognizes that its efforts to promote the importance of art investment funds to the art market and alternative investment community are irrelevant if art fund practitioners themselves do not operate according to the highest ethical standards and sound business practices. Accordingly, Art FA is at the forefront of developing best practices and professional standards of conduct to guide the art fund industry as it continues to grow and mature. Such practices and codes of conduct should reflect concerns from the perspectives of both art fund managers and fund investors. To that end, Art FA has formed a “Best Practices Committee” that is working to develop what will be widely-used guidelines for the governance of art investment funds and art funds of funds. Specifically, such Committee is charged with investigating the following topics:

• Liquidity and Withdrawal considerations;
• Portfolio Diversification;
• Portfolio Valuation Guidelines:
• Proper Disclosures and Due Diligence Procedures;
• Adoption of effective Compliance Programs;
• Risk Management;
• Clawback standards;
• Limitations on Advertising;
• Reporting Guidelines;
• Resolution of Conflicts of Interest;
• Anti-Money Laundering and Know-Your-Client rules.