A hedge fund industry body has published a set of voluntary guidelines for the investment vehicles' activities.
The UK-based Hedge Fund Working Group's (HFWG) guide pledges to disclose more information about the risks that the funds run, as well as the fees that are charged.
The documents will also codify how the funds value their assets, the Financial Times reports.
Currently 14 mostly London-based managers of funds have signed up to the voluntary standards, with HFWG chairman Sir Andrew Large admitting that for the regulations to be successful significantly more firms must endorse them.
Mr Large, who has previously occupied the role of Bank of England deputy governor, added that it enforcement of the rules is going to depend on the behaviour of investors.
"It is a market discipline process and a large portion of that discipline is going to be led by investors," he explained.
The HFWG hopes that the rules will head off attempts at greater regulation of the hedge fund sector which were mooted by European governments last year.
