Fri, Jul 29, 2016
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. Opalesque Exclusive: California-based manager launches long/short equity hedge fund with unique algorithm[more]

    Benedicte Gravrand, Opalesque London for New Managers: SJL Capital LLC, an investment advisory firm based in California, has launched its maiden fund, the SJL MarketDNA Hedge Fund LP. The fund, which began trading

  2. Manny Roman to move from Man to Pimco[more]

    Benedicte Gravrand, Opalesque London: Emmanuel (Manny) Roman, an investment world veteran, has been hired by PIMCO, the large US bond fund house, as chief executive officer. PIMCO's current CEO Douglas Hodge will assume a new role as managing director and senior advisor when Roman joins P

  3. Opalesque Exclusive: ArbitrOption outperforms benchmarks, up 7.18% in H1[more]

    Komfie Manalo, Opalesque Asia: Independent registered advisor ArbitrOption breezed through the tumultuous Brexit referendum and outperformed its benchmarks. ArbitrOption was up 7.18% in the first half of 2016 compared to the S&P 500 which gain

  4. Europe - European hedge funds shrink and shutter as turmoil hurts returns, Investors go bargain-hunting for U.K. property after Brexit vote, Brexit: Guidance for fund directors - what to know and what to ask[more]

    European hedge funds shrink and shutter as turmoil hurts returns From Bloomberg.com: Europe’s hedge-fund industry contracted for a sixth straight quarter as the U.K.’s decision to leave the European Union and concerns that China’s growth is slowing caused losses and forced some money man

  5. Platinum Partners starts liquidation of hedge funds following municipal union kickback scandal[more]

    Komfie Manalo, Opalesque Asia: Platinum Partners, the hedge fund in the middle of a New York City municipal union kickback investigation, is reported to be liquidating two of its funds, the New