Tuesday, 25 November 2014
Last updated 46 min ago
Oct 18 2013 | 12:57pm ET
A new study puts a price on the rising cost of hedge-fund compliance.
The average hedge fund spends between 5% and 10% of its operating costs on compliance, according to KPMG International, the Managed Funds Assocition and the Alternative Investment Management Association. Hedge-fund compliance costs have been rising in the face of a raft of new regulations in both the U.S. and Europe.
"It's absolutely raising the barriers to entry," KPMG's Robert Mirsky said. "I don't think the industry is opposed to sensible regulation, but you have to be very careful that you don't layer on so much that it stifles the ability to innovate and the ability to the industry to grow."
Hedge funds with more than $5 billion in assets paid an average of $14 million on compliance. Those with between $1 billion and $5 billion average $6 million, and those with less than $1 billion $700,000.
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
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