- Alternatives Industry Overview – This course provides for a deeper understanding of the hedge fund industry, its size and scope, the types of fund structures that have emerged in the past few years and the types of participants that comprise the industry. From third party agents and how they market the fund to the details of the information flow from the investor to the fund to the valuation process and back to the investor reporting, the module also briefly touches on the latest regulatory issues and where the industry is going. This course is recommended for new entrants into the alternatives industry.
- Culture of Compliance Overview – On February 10, 2005, the SEC adopted rule 203 (b)(3)-2 under the Investment Advisers Act of 1940 requiring hedge fund advisers to register with the SEC. It stated that the rule and rule amendments
“…are designed to provide the protections afforded by the Advisers Act to investors in hedge funds, and to enhance the Commission’s ability to protect our nation’s securities markets… Once registered, hedge fund advisers will be required to have comprehensive compliance procedures and to designate a chief compliance officer. Specific procedures governing proxy voting and a code of ethics including requirements for personal securities reporting will also be required. In addition, the obligation to commit to a program of compliance controls combined with our examinations foster adherence to a culture of compliance by advisers. These compliance measures are the first line of defense in protecting investors against an adviser’s misconduct.”
While this rule, in the above form, has been reversed, the effect of it and the ongoing dialogue between the regulators and the industry continues to keep firms on their toes. What does this heightened interest in compliance mean to alternatives firms and the way they do business? What does it mean to firms that want to enter into this industry? If you’re a hedge fund or fund-of-funds manager, what regulations, if any, will apply to your firm? If you are an administrator, what do you need to know and what should you be focusing on now to be able to help your clients deal with ever-changing rules? These are questions that the Culture of Compliance workshop answers, as well as stepping you through the requests to expect from clients and regulators, alike, in the coming months.