Hedge Funds Focus More Time, Personnel On Compliance

Oct 28 2013 | 1:22pm ET

Hedge fund chief compliance officers are dedicating up to 50% more time to legal compliance and regulatory matters, according to a new mini-poll from Deutsche Bank Markets Prime Finance

In July 2013, DB surveyed 44 European and US hedge fund managers representing nearly $325 billion in assets under management.

In addition to the increased time spent on regulatory matters by COOs in the past two years, there's been an increase in compliance-dedicated staff: more than 40% of respondents said they'd hired more than one non-investment full-time equivalent over that time period to help prepare for and manage new regulatory requirements.

The majority of managers surveyed also said their non-headcount related costs had increased up to 25% over the last two years. 

The UK Financial Conduct Authority has given hedge fund managers until July 2014 to become authorized under Alternative Investment Fund Managers Directive, a deadline 82% of the hedge fund managers polled are preparing to meet although 39% are not sure AIFMD will bring additional investment from institutional allocators.

Marketing to European investors continues with a significant proportion of managers in Europe (35%) and the US (43%) choosing to utilize transitional marketing provisions. Alternatively, half of managers have decided to respond only to incoming investor requests for information regarding their funds until they have further clarity on marketing into Europe under AIFMD.


In Depth

Firm Focus: Sustainable Insight Capital Bullish On ESG

Aug 12 2014 | 9:18am ET

Bruce Kahn spent over 15 years as a research scientist/consultant on environmental...

Lifestyle

Viking Manager In Rent Dispute

Aug 11 2014 | 4:14am ET

A hedge fund manager is demanding most of his money back from his former landlord...

Guest Contributor

Majority Of Inflows Go To Brand Name Hedge Funds

Aug 12 2014 | 9:00am ET

Since the market correction of 2008, a vast majority of hedge fund net asset flows...

 

Editor's Note

 

Futures Magazine

PREVIEW July/August 2014 Cover

Inside Futures' 500th Issue

The July/August 2014 issue is our largest in years—filled with the best trading strategies and stories from 43 years of being the primary publication for commodity, stock, options and forex traders.

The Alpha Pages

TAP July/August 2014 Cover

Real talk on alternative investments, business & finance

The Alpha Pages Editor's Note