The task of serving as chief compliance officer (CCO) of a hedge fund manager is becoming progressively more challenging in light of ever-increasing regulatory obligations, heightened enforcement activity and resource constraints. CCOs can benefit from understanding the best practices being employed by their peers, and customizing relevant practices to their businesses. As Executive Director of Ernst & Young’s Asset Management Advisory Practice, Daniel New sees a cross-section of compliance practices at brand-name hedge fund managers. He sees what works from a compliance perspective, and what needs work. The Hedge Fund Law Report recently interviewed New on a range of issues regularly encountered by hedge fund manager CCOs. The interview spanned topics including consistency of fund marketing and disclosure documents; a CCO’s role in preparing and completing Form PF and other regulatory filings
; structuring and memorializing annual compliance reviews
; allocating expenses
between a manager and its funds; insider trading
and political intelligence
controls; social media
use by manager personnel; a CCO’s risk management
of CCO functions in light of resource constraints; and mitigating rogue trading risks. The breadth of topics covered reflects the expansiveness of a typical CCO’s portfolio. The idea behind this interview is to enable CCOs to allocate their scarcest resource – time – more effectively. This interview was conducted in connection with the Regulatory Compliance Association’s upcoming Compliance, Risk & Enforcement 2013 Symposium, to be held at the Pierre Hotel in New York City on October 31, 2013. Subscribers to the Hedge Fund Law Report are eligible for a registration discount.