Fri, May 22, 2015
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. Comment - Top hedge fund managers talk about how easy their jobs have gotten, BlackRock to Schroders warn of Argentina’s $20bn bond glut, The 35-year “investment supercycle” is drawing to a close, says Bill Gross, Gundlach: When the Fed starts hiking rates, 'GET OUT' of this asset class[more]

    Top hedge fund managers talk about how easy their jobs have gotten From Businessinsider.com.au: Time was, before the financial crisis hit, corporate boards treated multi-billion dollar hedge fund managers like Jehovah’s Witnesses pounding on their doors and flashing bibles. But no more.

  2. T Rowe's challenge to Dell deal may fuel critics of 'appraisal'[more]

    From Reuters.com: An increasingly popular tactic used by hedge funds and others to extract more money from buyouts could soon face a major courtroom test when a big investor in Dell Inc may argue that it should be paid a higher price for the 2013 acquisition of the PC maker. The strategy, known as "

  3. News Briefs - Ergen says LightSquared plan unfairly favors hedge funds, Why hedge fund managers make good advisory clients, I learned a lot about dad-bros after spending 4 days in Vegas with 2,000 hedge funders[more]

    Ergen says LightSquared plan unfairly favors hedge funds LightSquared Inc.’s bankruptcy plan gives hedge funds that invested in the broadband company a leg up while blocking telecommunications firms from competing with it, a fund owned by Dish Network Corp. Chairman Charles Ergen said in

  4. Opalesque Exclusive: Ovation Partners targets opportunities where few "natural lenders" participate[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Changes in financial regulations post-2008 (Dodd-Frank and Basel III) are forcing banks to significantly alter their core lending businesses. And as mid-sized

  5. Opalesque Exclusive: A lot of hedge fund investors are beginning to recognise the need for ongoing cyber threats monitoring[more]

    Benedicte Gravrand, Opalesque Geneva: Corporate Resolutions Inc. recently formed a strategic partnership with iThreat Cyber Group. The two companies have worked together for years, assisting clients when challenging

 

banner