Mon, Aug 3, 2015
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. Opalesque Exclusive: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  2. Investing - Hedge fund billionaires bet on London as revival gathers pace[more]

    From Bloomberg.com: London’s fund industry is bouncing back, and U.S. billionaires Steven A. Cohen and Ken Griffin are grabbing a piece of the action. Griffin’s Citadel and Millennium Management, a hedge fund run by Israel Englander, have bulked up in London, where asset growth is outpacing the U.S.

  3. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

  4. Opalesque Roundup: Hedge fund assets rose to 11th consecutive quarterly record level: hedge fund news, week 31[more]

    In the week ending 24 July, 2015, the total global hedge fund industry assets rose to the 11th consecutive quarterly record level in 2Q15 to $2.97tln; Eurekahedge reported that hedge funds raised $93bn in the first six months of 2015; The SS&C GlobeOp Forward Redemption Indicator for July 201

  5. Cowen Group, Inc. to acquire Conifer Securities[more]

    Cowen Group, Inc. and Conifer Securities, LLC had announced the signing of a definitive agreement under which Cowen will acquire Conifer Securities, the prime services division of Conifer Financial Services LLC. The transaction, the terms of which have not yet been disclosed, was approved by the boa

 

banner