Managers of hedge funds would have to improve the operating procedures of the giant pools of capital in such areas as transparency and risk management under new proposals offered Tuesday.

Two advisory groups assembled by the Bush administration proposed new “best practices” for the hedge fund industry, but a critic attacked the effort as falling far short of the mandatory government regulations that are needed.

One plan was prepared by hedge fund managers and the other was put together by investors who use the funds.

Hedge funds, which operate with little government supervision, cater to institutional investors and very wealthy people. However, millions of ordinary people also have become unwitting investors in the funds through their pensions.