Vigilant Compliance provides outsourced specialized compliance services for Private Equity and Hedge Fund Advisers. Whether you need a Chief Compliance Officer or you Chief Compliance Officer needs additional support, Vigilant has the knowledge and expertise to assist you in maintaining a strong Compliance Program. The Dodd-Frank Act requires Private Equity Advisers who manage over $150 million of assets to register with the SEC, and to have a compliance program that includes a Chief Compliance Officer. A Private Equity Adviser must comply with the Investment Advisers Act of 1940.
Private Equity and Hedge Funds require specialized Compliance Programs due to their investment styles. Vigilant is experienced in registering Private Equity Firms, developing their compliance Programs, and operating those programs.
Private Equity and Hedge Fund SEC Registration Requirements
Private equity and hedge fund compliance firm Vigilant Compliance can help you determine whether or not you must register your business. The Investment Advisers Act requires SEC registration under certain circumstances. They include:
- Your firm’s regulatory assets under management exceed $150 million dollars.
- Your firm’s client base includes individuals or entities that are not private equity funds or hedge funds.
- Your firm advertises in public in the U.S. as an investment adviser, or acts as an adviser to a registered investment or business development company.
- Your firm advises non-hedge fund or private equity clients, your regulatory assets under management exceed $25 million dollars and the laws governing your official place of business do not require registration or examination by a state securities regulator.
You do not need to follow SEC-registered private equity investment adviser rules if:
- Your regulatory assets under management do not exceed $25 million dollars (exceptions apply).
- Your firm advises venture capital businesses.
- Your firm is not located in the U.S., has fewer than 15 American clients or investors, does not advise a registered investment or business development company, and manages less than $25 million dollars in assets.
Firms must meet all criteria to claim an exemption, although there are some exceptions.
Prior to Registration
If your firm qualifies and must meet SEC hedge fund and private equity compliances, Vigilant Compliance can help. Prior to registration, your firm’s compliance policy must meet certain Investment Adviser Act guidelines. There is no grace period following registration. If you are unsure whether or not your firm meets existing regulation, call 1-888-229-1855 or contact Vigilant Compliance. Our compliance consultants can:
- Develop and implement written compliance policy and procedures that meet or exceed current rules and regulations. Our experienced consultants will review your business plan or existing operation and devise a strategy that assures your commitment to secure, ethical and legal practices.
- Review and amend your existing policies and procedures to meet Adviser Act requirements. It is in the best interests of your clients and your firm that your business encourages a culture where compliance forms the foundation of your reputation. Our consultants will review your existing policies and procedures, identify potential problems and design the policies and procedures that will help your business grow, safely and securely.
- Conduct mock SEC exams. Assure thorough preparation for your upcoming SEC exam with training from Vigilant Compliance, including mock SEC exams that measure retention and performance.
- Review your marketing, advertising and communications materials. Registered investment advisers must adhere to strict regulations when communicating with clients and the public. Ask us to review your marketing and communications strategies to assure your compliance with the Act.
- Prepare and submit accurate filings. Vigilant Compliance prepares, reviews and files Form ADV, Form PF, 13F, 13G and 13H forms on behalf of our clients.
- Investigate past practices and transactions. Vigilant Compliance provides thorough forensic compliance services.
- Provide Outsourced CCO or CCO Support Services. A professional at Vigilant Compliance is well prepared to act as your outsourced CCO. With our offices in Boston, New York, Philadelphia, Dallas and Washington, DC, a Vigilant Compliance consultant is ready to serve your needs.
The Vigilant Compliance 5 Step Matrix SystemSM
Not every investment adviser needs comprehensive compliance consulting services. With Vigilant’s 5 Step Matrix SystemSM, you can choose our whole Matrix of Services, or only those that service your needs, such as providing support services to your in-house CCO.
- Conduct specialized meeting to focus on high Risk Areas such as Valuation, Trading, and Conflicts of Interest
- Design Compliance Program for Long, Short, Cover transactions, Derivative Transactions, Puts, Calls, Straddles and SWAPs
- Designate a VC Professional to serve as your Chief Compliance Officer
- Prepare or Update your Investment Adviser Compliance Manual, Policies and Procedures
- Prepare a Risk Matrix and Counterparty Reveiws
- Prepare and Maintain Adviser Compliance Calendar
- Conduct Compliance Review of All Critical Adviser Areas
- Review of Marketing Materials for Compliance with SEC and FINRA Rules
- Review and document Compliance with the SEC’s Required Areas of Portfolio Management, Trading, Safety of Assets, Personal Trading by Access Persons, Disclosure Accuracy, Brokerage & Soft Dollar Usage, Privacy, and Books & Records
- Analyze Trading Costs Ratios in International and Far East Markets
- Conduct Due Diligence of Service Providers
- Testing of Compliance Program Areas
- Conduct your Required Annual Compliance Training
- Conduct Insider Trading Training
- Conduct Required Code of Ethics Training
- Train Employees on SEC Requirements relating to Utilization of Industry Experts to Make Investment Decisions
- Prepare Compliance Reporting Materials
- Preparation of Annual SEC Rule 206(4)-7 Report
- Complete Form ADV Amendments and State Notice Filings
- Prepare 13F Filings, 13G Filings, 13H Filings
- Analyze Compliance Issues
- Collect Supporting Documentation
- Respond & Resolve SEC Inquiries and Examination
Contact Vigilant Compliance
Vigilant Compliance, LLC is a full service Compliance Firm servicing the regulatory needs of a diversified range of investment management clients. With offices in New York, Philadelphia, Boston, Dallas and Washington, D.C., Vigilant Compliance is well positioned to help your business create and sustain an effective compliance policy. Since 2004, Vigilant has been the leader among regulatory compliance consulting firms; uniting regulatory compliance, legal, financial expertise and now paving the way to the Market for our clients.
Modified: November 7, 2018