Mon, Dec 5, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge fund industry spends on average 7% of total operating costs on compliance

Friday, October 18, 2013

Benedicte Gravrand, Opalesque Geneva:

A new survey shows the hedge fund industry is taking its compliance obligations seriously. However, the sheer capital commitment it entails, even if it makes the financial world a safer place, can be a real burden for many managers.

According to The Cost of Compliance, a new report produced by the Alternative Investment Management Association (AIMA), the Managed Funds Association (MFA) and KPMG International, the average spent on compliance is currently at least $700,000 for small fund managers, $6 million for medium-size fund managers and $14 million for large fund managers.

The survey, which also includes interviews, was conducted between May and August 2013, among 200 hedge fund managers representing more than $190 billion in AuM.

Those managers, it was found, have already spent more than $3 billion so far on compliance costs, that is, anywhere between 5% and 10% of their operating costs on compliance technology, headcount and strategy.

Hard on smaller firms However, this is not easy on smaller firms, and on those trying to launch. As a percentage of their assets and relative to operating costs, they seem to be spending more money compared to their larger peers. "More than a third of hedge fund managers polled with less th......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. M&A - AllianzGI to acquire Sound Harbor Partners, SS&C completes acquisition of Wells Fargo's Global Fund Services business[more]

    AllianzGI to acquire Sound Harbor Partners Allianz Global Investors (AllianzGI), an active investment manager, announced that Sound Harbor Partners, a US private credit manager led by Michael Zupon and Dean Criares, have agreed to join its fast-growing Private Debt Platform. Under the te

  2. Hunt for yield pushes more investors into riskier assets[more]

    From FT.com: Pension funds and insurance companies have increasingly embraced riskier assets in their hunt for higher returns over the past five years. Alternative assets such as property, infrastructure, private equity and hedge funds have been bought up by institutional investors in a world where

  3. People - Nectar Financial hires senior investment team, Texas A&M replaces retiring foundation investment chief, Ex-Cadwalader partner Woolery makes another sudden exit, How to become a Python coder at a top hedge fund, by the co-CTO of Man AHL[more]

    Nectar Financial hires senior investment team Nectar Financial AG, a Swiss financial technology company for wealth and asset management, has announced that it has hired two key senior leaders to spearhead its digital asset management efforts. The company also announced that it has entere

  4. Activist News - Cognizant has introductory discussion with activist investor Elliott; to review letter, Starboard Value makes huge investment in Hewlett Packard, Hedge fund calls for removal of First NBC Bank CEO[more]

    Cognizant has introductory discussion with activist investor Elliott; to review letter From Indiatimes.com: Cognizant said it had an introductory discussion with Elliott Management after receiving the activist hedge fund's letter asking for a board shakeup, a buyback, a dividend and chan

  5. Opalesque Exclusive: Ireland relaxes treatment of direct lending funds[more]

    Bailey McCann, Opalesque New York: The Irish Central Bank has relaxed its treatment of direct lending funds, according to a recently released