FSA rules forcing hedge funds to record and archive cell phone conversations to increase cost burdens

Financial Services Authority (FSA) regulations forcing financial institutions including non-
banks to record traders’ cell phone conversations and archive them for six months could prove
disproportionately costly for smaller to mid-sized hedge funds.
The requirements, which come into play in November 2011, are designed to curb fraud and insider
trading. However, the infrastructure does not come cheap, warned Greg Collins (pictured), chief
executive officer of IT and telecommunications consultancy JP Reis. While recording traders’
landlines has been going on for a while now, cell phones have been exempt from monitoring until
only recently.

Mar 01, 2011

Hedge fund directors should sit on fewer boards and be paid more, according to industry experts

Capping the number of hedge fund boards directors can sit on while simultaneously increasing their remuneration could significantly improve corporate governance standards in the alternatives space, according to industry experts.

Feb 10, 2011

Compliance specialists IMS Group acquires MMS Regulatory Solutions

Consultancy firm IMS Group has acquired MMS Regulatory Solutions (RSL). This is IMS’s first acquisition since it was bought out by private equity buy and build specialist Sovereign Capital in November 2010.

Feb 09, 2011

Ireland as fund domicile continues to flourish despite economic woes

The net asset value of Irish-domiciled funds is nearing €1 trillion, according to data released by the Central Bank of Ireland.

Feb 03, 2011

Proposals on CCPs in MiFID consultation could hurt hedge funds

European regulators face a backlash from hedge funds following proposals to ban central counterparty clearing house (CCP) –eligible trades that CCPs refuse to process.

Feb 02, 2011

Hedge fund managers show disapproval towards EU short-selling proposals

Hedge fund managers have expressed their disdain for the European Union’s (EU) proposed short-selling disclosure requirements. Forcing fund managers to publicly disclose their net short positions could distort financial markets and hinder sound risk management, according to the report by Oliver Wyman.

Feb 01, 2011

Compliance firms face consolidation as new regulations come to fore

Compliance firms servicing the alternative asset management space could find themselves being consolidated in the coming months and years ahead as the industry finds itself inundated with new regulations.

Jan 31, 2011

SEC increases reporting requirements for biggest hedge funds

Advisers to the biggest hedge funds will face even more reporting requirements as the US Securities and Exchange Commission (SEC) continues to toughen up its regulatory oversight.

Jan 26, 2011

Regulation could increase the systemic risk hedge funds pose, according to industry expert

Ill-thought out regulation could perversely increase the systemic risk posed by hedge funds to the broader financial markets, according to a leading expert.

Jan 24, 2011

Clearing OTC derivatives through CCPs could hurt smaller hedge funds

Forcing smaller hedge funds to clear over-the-counter (OTC) derivatives through a central counterparty clearing house (CCP) is misguided and could prove rather costly.

Jan 21, 2011