Hedge Fund Compliance: Risks, Regulation, and Management


Hedge Fund Compliance: Risks, Regulation, and Management

Jason Scharfman, Managing Partner,
Corgentum Consulting, LLC

Hedge Fund Compliance: Risks, Regulation, and Management provides straightforward practical guidance for the development and analysis of a hedge fund’s compliance program. Compliance is one of the fastest growing areas in the hedge fund space. No longer simply a rote exercise, hedge fund compliance has evolved into a dynamic area that is critically important in the successful management of a hedge fund. This reference book provides an essential foundation in hedge fund compliance and reflects recent global regulatory changes in this field. A companion website to the book includes examples of compliance policies and links to laws and regulations referenced in the book.


  • Detailed analysis of the key elements of a hedge fund compliance program ranging from the role of the CCO and governance committees to the growing role of compliance technology and cybersecurity policies
  • Due diligence considerations for investors seeking to evaluate and monitor hedge fund compliance programs
  • Examination of examples of core hedge fund compliance documentation including a Compliance Manual and Code of Ethics
  • Exclusive interviews are featured with hedge fund compliance practitioners
  • Recommended by the CAIA Association's Alternative Investment Analyst Review
  • Release date: December 19, 2016

Topics Covered Include:

  • The compliance role played by hedge fund service providers including legal counsel, information technology consultants, prime brokers and administrators
  • The emerging role of compliance consultants
  • Case studies and example scenarios in hedge fund compliance
  • Overview of the practical compliance implications of global hedge fund regulation including discussions of the role of Dodd-Frank, Alternative Investment Fund Managers Directive (AiFMD) and the Markets in Financial Instruments Directive II (MiFID II)
  • Examination of the regulatory examination processes and reporting obligations required by hedge funds regulators including the U.S. Securities and Exchange Commission (SEC), U.S. Commodity Futures Trading Commission (CFTC) and the National Futures Association (NFA), UK Financial Conduct Authority (FCA), the Monetary Authority of Singapore (MAS) and the Cayman Islands Monetary Authority (CIMA)
  • Analysis of common hedge fund compliance considerations:
    • Investment compliance including trade surveillance, trade allocation policies and soft dollar usage
    • Hedge fund employee compliance considerations in areas including compliance policy training and testing, conflict of interest management, and personal account dealing
    • Insider trading risk management through compliance policies relating to the use of expert networks and the management of material non-public information (MNPI)
    • Technology based compliance policies and procedures including those related to cybersecurity, data access and archiving and electronic communication surveillance

Click here to purchase a copy of the book on Amazon.com

Also available by Jason Scharfman:

Hedge Fund Operational Due Diligence: Understanding the Risks

Private Equity Operational Due Diligence, + Website: Tools to Evaluate Liquidity, Valuation, and Documentation

Hedge Fund Governance: Evaluating Oversight, Independence, and Conflicts