Hedge fund compliance : risks, regulation, and management / Jason Scharfman.

Format:

Book

Author/Creator:

Scharfman, Jason A., 1978- author.

Series:

Wiley finance series.

Wiley Finance Series

Language:

English

Subjects (All):

Hedge funds.

Hedge funds--Law and legislation.

Risk management.

Physical Description:

1 online resource (186 pages).

Edition:

1st ed.

Place of Publication:

Hoboken, New Jersey : Wiley, 2017.

Summary:

The long-awaited guide for modern hedge fund compliance program development Hedge Fund Compliance + Website provides straightforward, practical guidance toward developing a hedge fund compliance program, drawn from the author's experience training financial regulators, consulting with government entities, and analyzing hedge fund compliance structures across the globe. In-depth explanations of compliance principles are backed by illustrative case studies and examples. Highly in-demand templates of popular hedge fund compliance documentation provide actionable illustrations of key compliance policies. Designed to assist investors, fund managers, service providers, and compliance job seekers directly, this book describes the fundamental building blocks of the hedge fund compliance function. Compliance is one of the fastest growing areas in the hedge fund space. This reference book provides an essential foundation in modern hedge fund compliance, reflecting the recent changes of this dynamic field. * Design and run a hedge fund compliance program * Access templates of core compliance documentation and checklists * Discover how investors can evaluate and monitor compliance programs * Interviews with hedge fund compliance practitioners A steady stream of regulatory changes, combined with the enhanced enforcement efforts of regulators, ensure that hedge funds' compliance-related expenditures will continue to grow. While hedge fund compliance legislation continues to evolve globally, little practical guidance exists for those tasked with the boots-on-the-ground aspects of developing an actual compliance program to comply with best practices and regulatory guidance from leading hedge fund regulators including the US Securities and Exchange Commission, the National Futures Association, the Commodity Futures Trading Commission and the United Kingdom's Financial Conduct Authority. Hedge fund professionals and investors need a fundamental framework for establishing and evaluating an effective program, and when compliance is the issue, trial and error carries too much risk. Hedge Fund Compliance + Website provides clear guidance and practical tools to meet today's compliance professional needs.

Contents:

Cover

Title Page

Copyright

Contents

Preface

Chapter 1 Introduction to Hedge Fund Compliance

Introduction

Differences in Hedge Fund and Other Alternative Fund Compliance

Hedge Fund Compliance Is Not Specific to One Country

Regional Compliance Expertise Used by Hedge Funds

Benefits to Developing a Global Understanding of Compliance

Do Alternative Investments Merit Special Compliance Considerations?

Contrasting Regulatory and Market Classifications

Understanding the Hedge Fund Compliance Framework

Introduction to the Hedge Fund Compliance Function

Distinguishing the Legal and Compliance Departments

The Legal Department Function

Related but Not Equivalent

Key Players in Compliance

Standard Areas Covered by a Hedge Fund Compliance Function

Compliance Function Roles and Authority

Chapter Summary

Notes

Chapter 2 Introduction to Hedge Fund Regulation and Examination

Different Types of Regulation for Different Financial Entities

Why Regulation Is Needed

Arguments against Hedge Fund Regulation

Arguments in Favor of Hedge Fund Regulation

Regulation Is Nonnegotiable

Where Do Compliance Rules Come From?

Multiple Regulators in the Same Jurisdiction

Self-Regulatory Organizations

Key Hedge Fund Regulators

National and Global Jurisdiction

Regulator Funding

Common Regulatory Interaction with Hedge Funds

Regulatory Examinations

Routine Examinations

Targeted Examinations and Sweep Inquiries

Regulatory Reporting

Chapter 3 The Chief Compliance Officer and Regulatory Reporting

Introducing the Chief Compliance Officer

Is a Chief Compliance Officer Required?

The Role of the Chief Compliance Officer.

Promoting a Culture of Compliance

CCO Qualifications

CCO Duties

Regulatory Reporting in Multiple Jurisdictions

Common Regulatory Reporting Questions

A Multistep Process

Step 1: Evaluate a Hedge Fund's Regulatory Reporting Eligibility Requirements

Step 2: Determine What Specific Forms and Data Are Required

Step 3: Develop a Strategy Regarding What Data to Provide

Step 4: Select the Appropriate Method and Group to Transmit Information to a Regulator

Step 5: Adhere to Ongoing Filing Requirements

Step 6: Conduct Ongoing Evaluations of New Filing Requirements

Chapter 4 In-House Compliance Professionals and Hedge Fund Committees

Common Compliance Function Tasks

Compliance Training

Ongoing Compliance Training

Compliance Testing

Firm Committees as Compliance Mechanisms

Formal and Informal Committees

Types of Committees

Note

Chapter 5 Hedge Fund Compliance Technology

Understanding the Hedge Fund Information Technology Function

Information Technology Function Structure

Compliance Considerations For Different IT Functions

Primary Compliance Uses of Technology

Compliance Considerations for Use of Electronic Data

Increased Use of Electronic Data by Hedge Funds

Compliance Benefits of Utilizing Electronic Data

Compliance Oversight of Nonelectronic Data

Business Continuity and Disaster Recovery Planning

Chapter 6 Compliance Consultants and Other Compliance-Related Service Providers

Service Provider Compliance

Classification of Compliance Service Providers

Service Provider Compliance Work

Hedge Fund Compliance Consultants

Reasons for the Increased Use of Compliance Consultants

Services Offered by Compliance Consultants.

Outsourced Chief Compliance Officers

Outsourced CCO Best Practices

Common Tasks Performed by Outsourced CCOs

Chapter 7 Understanding Key Compliance Documentation

Reasons for Documenting Compliance Policies and Procedures

Understanding the Goals of Compliance Documentation

Jurisdictional Differences in Compliance Documentation

Understanding Boilerplate Documentation

Risks of Boilerplate Documentation

Core Compliance Documentation

Jurisdiction-Specific Compliance Policies

The Role of Compliance in Influencing Other Noncompliance Documents

Chapter 8 Investor Evaluation of Hedge Fund Compliance Functions

Compliance Evaluations in Investor Due Diligence

Evaluating a Culture of Compliance

The Larger Due Diligence Processes

Initial and Ongoing Compliance Analysis

Stages of Initial Compliance Analysis

Ongoing Compliance Monitoring

Evaluating Best Practice Compliance

Minimum Regulatory Compliance

Distinguishing Best Practice Compliance from Industry Standards

Key Compliance Analysis Areas

Personal Account Dealing Analysis

Material Nonpublic Information

Chapter 9 Case Studies and Example Scenarios in Hedge Fund Compliance

Compliance Scenario 1

Concept Questions

Summary

Compliance Scenario 2

Scenario 2 Summary

Case Studies

Case Study 1:

Case Study 2

Chapter 10 Common Compliance Pitfalls and How to Avoid Them

Pitfall 1: Small Firms Build Large Firm Compliance Infrastructures

Pitfall 2: Underspending on Compliance

Pitfall 3: Lack of Independent Compliance Reporting

Pitfall 4: Outsourcing All Compliance

Pitfall 5: Relying on Technology and Compliance Automation.

Pitfall 6: Letting Investor Opinion Drive Compliance Priorities

Chapter 11 Interviews with Compliance Service Providers

Interview with Kent Wegrzyn (ACA Compliance Group)

Compliance Consultant Services

Interaction with Other Hedge Fund Service Providers and Compliance Consultants

Governance

Regulatory Audits

Chief Compliance Officer

Use of Technology in Compliance

Compliance Expense Management

Hedge Fund Marketing and Compliance

Additional Questions

Interview with Vinod Paul (Eze Castle Integration)

Compliance-Related Information Technology Consultant Services

Data Backup, Archiving, and the Cloud

Information Protection and Cybersecurity

Business Continuity and Disaster Recovery

Chapter 12 Trends and Future Developments

Chief Compliance Officers Personal Liability Concerns

Increased Senior Manager Regulatory Accountability

Compliance-Related Insurance

Increasingly Coordinated Hedge Fund Regulation in Europe

About the Author

Index

EULA.

Notes:

Includes index.

Description based on print version record.

ISBN:

9781119240273

1119240271

9781119240266

1119240263

9781119240242

1119240247

OCLC:

964332362