Another Day; Another Piece of Regulation

Terry Flanagan

The joint Securities Exchange Commission) (SEC)/Commodity Futures Trading Commission (CFTC) have mandated increased private fund (form Pf), bundled within the overall Dodd Frank Act for financial. Increased reporting will be demanded mostly from hedge funds with over 1 billion in assets.

With all regulation, reform is a constant concern for fund managers, heightened by a combination of fund manager, fund and investor information. It can also include asset and/or derivatives exposures, financing transactions, collateral arrangements, counterparty exposures and indications of liquidity.

Although implementation is to be determined, an estimated deadline is January 15, 2012, according to hedge fund service provider GlobeOp.

To assuage the transition, GlobeOp has centered themselves as the liaison between regulators and clients. ‘By efficiently gathering data and drafting reports for client review and submission, we can help them meet regulatory obligations, save time and reduce investment in internal resources,’ said Tony Glickman, global head of Analytics at GlobeOp.

Administrators are a key component in understanding regulatory changes, especially for hedge funds and managed accounts with complex portfolio, risk and performance data. Compiling and organizing such data is cumbersome for many managers who find staying afloat within regulatory waters is a necessary, but tedious addition to their daily responsibilities.

‘Fund managers do not typically maintain spare personnel to take on new responsibilities, especially one as potentially onerous as Form PF with its hundreds of data points,’ Glickman said. ‘Managers know enough about Form Pf to realize that it presents an enormous challenge for them. In terms of its current projected requirements, aggregating all the data required – even for a manager with a single fund – is daunting to many managers.’

GlobeOp’s embedded reporting service will mainly focus on efficiently gathering data, and drafting the Form Pf reports for clients, which Glickman hopes clients will find ‘saves time, money and investment in internal systems and human resources,’ while meeting their regulatory reporting obligations. GlobeOp will minimize the operational burden by leveraging existing, integrated fund data infrastructures – including the general ledger, risk and pricing engines.

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