Hedge Fund Compliance + Website – Risks, Regulation, and Management

<p>Preface xi</p>
<p>CHAPTER 1 Introduction to Hedge Fund Compliance 1</p>
<p>Introduction 1</p>
<p>Differences in Hedge Fund and Other Alternative Fund Compliance 1</p>
<p>Hedge Fund Compliance Is Not Specific to One Country 4</p>
<p>Do Alternative Investments Merit Special Compliance Considerations? 5</p>
<p>Understanding the Hedge Fund Compliance Framework 9</p>
<p>Introduction to the Hedge Fund Compliance Function 10</p>
<p>Distinguishing the Legal and Compliance Departments 11</p>
<p>Key Players in Compliance 12</p>
<p>Standard Areas Covered by a Hedge Fund Compliance Function 14</p>
<p>Compliance Function Roles and Authority 16</p>
<p>Chapter Summary 17</p>
<p>Notes 17</p>
<p>CHAPTER 2 Introduction to Hedge Fund Regulation and Examination 18</p>
<p>Introduction 18</p>
<p>Different Types of Regulation for Different Financial Entities 18</p>
<p>Why Regulation Is Needed 20</p>
<p>Where Do Compliance Rules Come From? 22</p>
<p>National and Global Jurisdiction 23</p>
<p>Common Regulatory Interaction with Hedge Funds 24</p>
<p>Regulatory Examinations 25</p>
<p>Chapter Summary 28</p>
<p>Notes 28</p>
<p>CHAPTER 3 The Chief Compliance Officer and Regulatory Reporting 30</p>
<p>Introduction 30</p>
<p>Introducing the Chief Compliance Officer 30</p>
<p>Regulatory Reporting 34</p>
<p>Regulatory Reporting in Multiple Jurisdictions 34</p>
<p>Common Regulatory Reporting Questions 35</p>
<p>A Multistep Process 35</p>
<p>Chapter Summary 40</p>
<p>Notes 41</p>
<p>CHAPTER 4 In–House Compliance Professionals and Hedge Fund Committees 42</p>
<p>Introduction 42</p>
<p>Common Compliance Function Tasks 43</p>
<p>Firm Committees as Compliance Mechanisms 49</p>
<p>Chapter Summary 53</p>
<p>Note 54</p>
<p>CHAPTER 5 Hedge Fund Compliance Technology 55</p>
<p>Introduction 55</p>
<p>Understanding the Hedge Fund Information Technology Function 55</p>
<p>Primary Compliance Uses of Technology 58</p>
<p>Compliance Considerations for Use of Electronic Data 59</p>
<p>Compliance Oversight of Nonelectronic Data 64</p>
<p>Business Continuity and Disaster Recovery Planning 64</p>
<p>Chapter Summary 65</p>
<p>Notes 66</p>
<p>CHAPTER 6 Compliance Consultants and Other Compliance–Related Service Providers 67</p>
<p>Service Provider Compliance 67</p>
<p>Classification of Compliance Service Providers 67</p>
<p>Service Provider Compliance Work 68</p>
<p>Hedge Fund Compliance Consultants 69</p>
<p>Chapter Summary 82</p>
<p>Note 82</p>
<p>CHAPTER 7 Understanding Key Compliance Documentation 83</p>
<p>Reasons for Documenting Compliance Policies and Procedures 83</p>
<p>Understanding the Goals of Compliance Documentation 84</p>
<p>Jurisdictional Differences in Compliance Documentation 85</p>
<p>Understanding Boilerplate Documentation 85</p>
<p>Core Compliance Documentation 88</p>
<p>Chapter Summary 97</p>
<p>Note 98</p>
<p>CHAPTER 8 Investor Evaluation of Hedge Fund Compliance Functions 99</p>
<p>Introduction 99</p>
<p>Compliance Evaluations in Investor Due Diligence 99</p>
<p>Initial and Ongoing Compliance Analysis 101</p>
<p>Evaluating Best Practice Compliance 104</p>
<p>Key Compliance Analysis Areas 109</p>
<p>Chapter Summary 118</p>
<p>Note 118</p>
<p>CHAPTER 9 Case Studies and Example Scenarios in Hedge Fund Compliance 119</p>
<p>Introduction 119</p>
<p>Compliance Scenario 1 119</p>
<p>Compliance Scenario 2 122</p>
<p>Case Studies 123</p>
<p>Chapter Summary 129</p>
<p>Notes 129</p>
<p>CHAPTER 10 Common Compliance Pitfalls and How to Avoid Them 131</p>
<p>Introduction 131</p>
<p>Pitfall 1: Small Firms Build Large Firm Compliance Infrastructures 131</p>
<p>Pitfall 2: Underspending on Compliance 133</p>
<p>Pitfall 3: Lack of Independent Compliance Reporting 134</p>
<p>Pitfall 4: Outsourcing All Compliance 135</p>
<p>Pitfall 5: Relying on Technology and Compliance Automation 136</p>
<p>Pitfall 6: Letting Investor Opinion Drive Compliance Priorities 137</p>
<p>Chapter Summary 138</p>
<p>Notes 139</p>
<p>CHAPTER 11 Interviews with Compliance Service Providers 140</p>
<p>Introduction 140</p>
<p>Interview with Kent Wegrzyn (ACA Compliance Group) 140</p>
<p>Interview with Vinod Paul (Eze Castle Integration) 160</p>
<p>Chapter Summary 171</p>
<p>CHAPTER 12 Trends and Future Developments 172</p>
<p>Introduction 172</p>
<p>Chief Compliance Officers Personal Liability Concerns 172</p>
<p>Increased Senior Manager Regulatory Accountability 174</p>
<p>Compliance–Related Insurance 175</p>
<p>Increasingly Coordinated Hedge Fund Regulation in Europe 176</p>
<p>Chapter Summary 177</p>
<p>Notes 178</p>
<p>About the Author 181</p>
<p>About the Companion Website 183</p>
<p>Index 185</p>