Hedge Fund Scandals, New Regulations Are Boon For Vendors

Nov 18 2005 | 8:42pm ET

It seems that when it comes to hedge fund compliance, one person's pain is another one's gain. Firms specializing in hedge fund compliance tools are aiming to cash in with a series of new products promising to ease the burden of those pesky regulatory procedures. At least four products have hit the market this week alone, including a certification service and a compliance manual.

London- and Bermuda-based Amber Partners, a specialist firm that sifts though hedge funds' corporate documents and trading records, unveiled a service on Wednesday that offers to "certify" a fund's operations following a thorough investigation. What it will not do, however, is review a managers' investments or trading risk.

Amber Partner's stamp of approval does not come cheap. The firm charges between $40,000 and $500,000 to conduct a review.

The Hedge Fund Manual also hit the shelves this week. Kluwer Financial Services, which launched the product, claims the online manual "simplifies and expedites" the process of documenting a hedge fund's policies and procedures. The firm said its application addresses the SEC regulations mandating hedge funds to have a compliance manual in place.

So, with the hundreds of products and services out there claiming to cure hedge fund headaches, perhaps it's only a matter of time before someone launches a product rating the products.


In Depth

Creating An Offshore Hedge Fund Dream Team: The Seven Key Players

Jun 26 2015 | 6:47am ET

If you want to set up an offshore hedge fund, like any great team, you’re only...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note