Aci Hedge Fund

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Accounting & Compliance International 40 Wall Street, 34th Floor New York, NY 10005 212 668 8700 [email protected] HEDGE FUND CHALLENGES Hedge funds are facing dramatically increasing scrutiny,whether by regulators or investors themselves, while at the same time marketers are facing ever greater challenges in acquiring new investors and funds are dealing with unprecedented redemptions. The SEC has not yet mandated registration for all hedge funds, but there may be a time very soon when they do. ACI can help you be prepared. DUE DILIGENCE QUESTIONNAIRES - JUST THE BEGINNING The Due Diligence Questionnaire (DDQ) is a tool that guides the investment firm through an assessment of key areas of concern to investors and becomes the basis of a compliance program, enabling investors to also understand how essential components of running both the fund and the firm are handled. ACI can work with your team to review the core suite of questions and help you frame answers in light of regulatory requirements and investor concerns. Some of the critical areas covered include: background information and detail on service providers, fund details, characteristics and fees, detail on the investment strategy and philosophy, and clear detail on how the investment performance is reported. In addition the DDQ covers risk management, technology, systems and how the business aspects of the firm are handled. It should also reference the full suite of materials such as the Offering Documents and be fully in sync with those. KEY COMPLIANCE ELEMENTS With the enormous scope of fraud and malfeasance that has come to light recently, investors need to know that they are dealing with investment managers who are ethical and whose organizations have clearly defined Policy & Procedures Manuals and a Code of Ethics in place by which employees must abide. These documents enable hedge fund advisors to abide by anti-fraud rules and form the foundation of a strong, written Compliance Manual. There are several components that need to be addressed in detail for such documents to carry weight and serve as an operational framework, including: Investment Offering Documents, Pricing and Valuation Methodology for all securities - especially illiquid or private investments, Regulation D Exemptions and Filings, and Risk Monitoring/Management Program Details. There also needs to be sections in the Code of Ethics covering insider trading and personal securities transactions. ACI - ACCOUNTING & COMPLIANCE INTERNATIONAL ACI was formed in 1984. Over the years, it has expanded its operations to include noted financial industry veterans – former regulators, attorneys, accountants and compliance experts. The firm’s combined focus is to assist clients in managing the complexities of today’s rapidly changing regulatory environment. Our clients are investment managers, banks, broker-dealers and hedge funds, each relying on ACI as they face overwhelming challenges. Contact us today to discuss your firm’s registration, accounting and compliance requirements and find out how ACI can be your passport to security. The SEC and other regulators have begun to view hedge funds as little more than glorified investment advisors. Judging by the pace of recent legislation, Congress agrees and regulation appears certain. Are you ready for the new world? Whether you need registration, risk assessment, a comprehensive compliance program or precision accounting services, you can rely on the world class expertise of ACI. REGISTRATION • Broker Dealer • Investment Advisor • Hedge Fund • State & Agent - CRD / IARD • Investment Company • Bank / Thrift / Credit Union ACCOUNTING • Focus Reporting • Financial & Operational Principal • Liaise with SEC / Regulators / Auditors • Taxes - Personal & Entity Returns • Maintain Books & Records • Full Service Bookkeeping • Bank Reconciliation • Brokerage Statement Analysis • Financial Statement Preparation • Preparation of Monthly Net Capital COMPLIANCE • Advertising & Marketing Review • Anti Money Laundering • AML Audits • Due Diligence • Best Execution • Regulatory Filings • Annual Compliance Meetings • Branch Office Audits • Annual Review • Continuing Education Programs • Written Supervisory Procedures • Investment Advisor Manuals • Hedge Fund Manuals • Internal Investigations • Liaise with SEC + other regulators • Records & Responses for Auditors RISK MANAGEMENT • Know Your Customer • Comprehensive Risk Assessment • Counter-Party Risk • Transaction Reporting • Program Evaluation OUTSOURCING • Compliance • Bookkeeping / Accounting / FINOP OUR CAPABILITIES Your Passport to Security IT’S A NEW WORLD FOR HEDGE FUNDS

Transcript of Aci Hedge Fund

Page 1: Aci Hedge Fund

Accounting & Compliance International • 40 Wall Street, 34th Floor • New York, NY 10005 • 212 668 8700 • [email protected]

HEDGE FUND CHALLENGESHedge funds are facing dramatically increasing scrutiny, whether by regulators or investors themselves,while at the same time marketers are facing ever greater challenges in acquiring new investors and fundsare dealing with unprecedented redemptions. The SEC has not yet mandated registration for all hedgefunds, but there may be a time very soon when they do. ACI can help you be prepared.

DUE DILIGENCE QUESTIONNAIRES - JUST THE BEGINNINGThe Due Diligence Questionnaire (DDQ) is a tool that guides the investment firm through an assessmentof key areas of concern to investors and becomes the basis of a compliance program, enabling investorsto also understand how essential components of running both the fund and the firm are handled.ACI canwork with your team to review the core suite of questions and help you frame answers in light of regulatoryrequirements and investor concerns. Some of the critical areas covered include: background informationand detail on service providers, fund details, characteristics and fees, detail on the investment strategy andphilosophy, and clear detail on how the investment performance is reported. In addition the DDQ coversrisk management, technology, systems and how the business aspects of the firm are handled. It shouldalso reference the full suite of materials such as the Offering Documents and be fully in sync with those.

KEY COMPLIANCE ELEMENTSWith the enormous scope of fraud and malfeasance that has come to light recently, investors need toknow that they are dealing with investment managers who are ethical and whose organizations have clearlydefined Policy & Procedures Manuals and a Code of Ethics in place by which employees must abide.These documents enable hedge fund advisors to abide by anti-fraud rules and form the foundation of astrong, written Compliance Manual.

There are several components that need to be addressed in detail for such documents to carry weight andserve as an operational framework, including: Investment Offering Documents, Pricing and ValuationMethodology for all securities - especially illiquid or private investments, Regulation D Exemptions andFilings, and Risk Monitoring/Management Program Details. There also needs to be sections in the Codeof Ethics covering insider trading and personal securities transactions.

ACI - ACCOUNTING & COMPLIANCE INTERNATIONALACI was formed in 1984. Over the years, it has expanded its operations to include noted financial industryveterans – former regulators, attorneys, accountants and compliance experts. The firm’s combined focusis to assist clients in managing the complexities of today’s rapidly changing regulatory environment. Ourclients are investment managers, banks, broker-dealers and hedge funds, each relying on ACI as they faceoverwhelming challenges.

Contact us today to discuss your firm’s registration, accounting and compliance requirements and findout how ACI can be your passport to security.

The SEC and other regulators have begun to view hedge funds as little more than glorifiedinvestment advisors. Judging by the pace of recent legislation, Congress agrees and regulationappears certain. Are you ready for the new world?

Whether you need registration, risk assessment, a comprehensive compliance program orprecision accounting services, you can rely on the world class expertise of ACI.

REGISTRATION• Broker Dealer• Investment Advisor• Hedge Fund• State & Agent - CRD / IARD• Investment Company• Bank / Thrift / Credit Union

ACCOUNTING• Focus Reporting• Financial & Operational Principal• Liaise with SEC / Regulators / Auditors• Taxes - Personal & Entity Returns• Maintain Books & Records• Full Service Bookkeeping• Bank Reconciliation• Brokerage Statement Analysis• Financial Statement Preparation• Preparation of Monthly Net Capital

COMPLIANCE• Advertising & Marketing Review• Anti Money Laundering• AML Audits• Due Diligence• Best Execution• Regulatory Filings• Annual Compliance Meetings• Branch Office Audits• Annual Review• Continuing Education Programs• Written Supervisory Procedures• Investment Advisor Manuals• Hedge Fund Manuals• Internal Investigations• Liaise with SEC + other regulators• Records & Responses for Auditors

RISK MANAGEMENT• Know Your Customer• Comprehensive Risk Assessment• Counter-Party Risk• Transaction Reporting• Program Evaluation

OUTSOURCING• Compliance• Bookkeeping / Accounting / FINOP

O U R C A PA B I L I T I E S

Your Passport to Security

IT’S A NEW WORLD FOR HEDGE FUNDS