Wed, Oct 18, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

PwC: Hedge fund infrastructure critical to addressing regulatory and business requirements

Monday, June 20, 2011
Opalesque Industry Update – A new study by consulting firm PricewaterhouseCoopers reports that hedge fund infrastructure is crucial in addressing regulatory and business requirements, particularly in the light of the implementation of new rules, including the Dodd-Frank Act, the Alternative Investment Fund Managers Directive and the Foreign Account Tax Compliance Act.

In its paper entitled, ”Infrastructure: from cost to benefit – hedge funds 2.0”, PwC provides an insight into the correlation between the new regulatory regime and the financial crisis, and also takes a look into the necessary adjustments needed by individual hedge fund strategies to meet the challenges set by the new rules. Hedge funds can also take advantage and actually reap some benefits from the new regulations, the paper added

Mike Greenstein, global alternatives leader at PwC, commented, “Investors look for the ‘right’ kind of risk in their portfolios; they’re not looking to expose themselves to reputational or operational threats. Senior management wants to insulate their organizations from damage to credibility and brand so things that may not have been the focus of a firm’s infrastructure a few years ago have become critical in the face of the double threat of investor activism and regulatory change.”

Other key factors that are putting more pressures on hedge funds to change their operations are the demand from investors for greater due diligence and transparency.

But more importantly, hedge funds are finding it necessary to adopt the best available technology as they now acknowledge the need to expand their talent as many of the traditional methods available in the past are no longer suitable.

Greenstein added: “The industry has always been resource constrained but we’re now seeing top performers with compliance, tax and valuation skills in ever greater demand. Those with credible risk, legal, finance and investor relations expertise are also highly sought after. In Europe, base salaries for experienced compliance staff have doubled in recent years as hedge funds compete for resources in a limited talent pool. Investing now and ring-fencing key talent will pay off.”
Komfie Manalo

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Download is available on the PwC site: http://www.ukmediacentre.pwc.com/Media-Library/Infrastructure-from-cost-to-benefit-hedge-funds-2-0-79c.aspx Matthias Knab |   June 22, 2011 08:44:19 AM
Is the study available for download?   June 22, 2011 12:36:38 AM
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. Regulatory - David Stockman: Trump tax reform overhaul is a pipe dream, stocks are heading for 40-70% plunge, Carried interest tax: How much does it matter?, Odey sees 'terrifying' mix in MiFID, tapering, asset values, Hedge funds come together to share cost of MiFID and research, SEC turns up the heat on U.S. investment advisers, India's Sebi asks hedge funds to report investments in commodity derivatives[more]

    David Stockman: Trump tax reform overhaul is a pipe dream, stocks are heading for 40-70% plunge From CNBC.com: David Stockman is warning about the Trump administration's tax overhaul plan, Federal Reserve policy, saying they could play into a severe stock market sell-off. Stockman, the R

  2. North America - Puerto Rico rejects loan offers, accusing hedge funds of trying to profit off hurricanes[more]

    From TheIintercept.com: Puerto Rico has rejected a bondholder group's offer to issue the territory additional debt as a response to the devastation of Hurricane Maria. Officials with Puerto Rico's Fiscal Agency and Financial Advisory Authority said the offer was "not viable" and would harm the islan

  3. Investing - WPP targeted by short-selling American hedge fund, Sun co-founder sells secretive hedge fund on big chip trade[more]

    WPP targeted by short-selling American hedge fund From Cityam.com: An American hedge fund has mounted a bet against WPP, the world's largest advertising group, with a trade worth almost £90m. Lone Pine Capital has built a short position worth 0.51 per cent of the FTSE 100 company,

  4. Hedge funds up as industry adjusts to rising rates[more]

    Komfie Manalo, Opalesque Asia: Hedge funds have reshuffled their portfolio after nearly four weeks of rising rates as the Lyxor Hedge Fund Index was up +0.2% from 19 September to 26 (+1.1% YTD), fuelled by strong results of global macro funds, Lyxor Ass

  5. Manager Profile - How the world's hedge fund king used 'idea meritocracy' to become a billionaire[more]

    From Forbes.com: In 1982, Ray Dalio made what he calls the biggest mistake of his life. He made a bet that there would be an economic collapse stemming from a debt crisis. And he was wrong. He lost money. He lost his client's money. He had to let people go from his firm and borrow money from his dad