In a white paper which was presented to high-level asset managers in New York by FinServ Consulting, 'Preparing for Alternative Asset Management Regulation', it is said that hedge funds should be prepared to identify, aggregate and report on counterparty risk exposures, enterprise-wide.
“The majority of hedge funds and private equity funds spent the latter part of 2008 and early 2009 instituting layoffs and shutting down projects. Now, in light of coming regulation, the heads of these funds will be faced with having to do more with less. Therefore, it is going to be critical that funds approach their compliance efforts in an organized and efficient manner,” said Howard Weinstein, Managing Partner of FinServ Consulting. “We recommend that funds identify a partner who can help them navigate these important steps. Ultimately, finding an experienced firm who has been through this process before will enable the fund to save both time and money.”
The paper outlines a roadmap for planning cost-effective, asset-building infrastructures to meet new rules, such as approaching new regulatory rules as opportunities, and facing compliance activities proactively, with a budget for meeting future requirements and exceeding investor expectations, particularly as investors return to the market.·