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Alternative Market Briefing

Compliance concerns drive more hedge fund business decisions

Tuesday, August 16, 2016

Bailey McCann, Opalesque New York:

Compliance concerns are driving more business decisions at hedge funds than ever before, according to the results of a survey done by Cipperman Compliance Services and hosted by Opalesque. Survey findings suggest that hedge fund managers overwhelmingly expect increases in compliance spending to continue over the next two years.

Eighty-one percent of hedge fund managers anticipate spending more on their compliance function over the next two years. Additionally, 71 percent said their greatest concern is "staying current on regulatory challenges."

The survey was conducted through Opalesque during the months of June and July. The results include 71 leaders in the investment management industry, including 21 hedge fund professionals.

"As we’ve seen in other areas of investment management, hedge fund professionals are now fully aware of the need for a robust compliance program and investors are more closely attuned to regulatory demands," said Todd Cipperman, founding principal of Cipperman Compliance Services. "We stress to clients that it can be damaging to take firm risk and not think through your manager’s compliance approach."

91 percent said their firm’s attitude toward compliance is that it is important in attracting and retaining clients or is simply the cost of doing business. Investors also are making a strong push to understand the compliance process within a given firm, 71 percent of funds reported having ......................

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