Vigilant provides outsourced customized compliance solutions to Hedge Fund Managers and other Private Fund Managers. If your Chief Compliance Officer does not have the capacity (e.g., dual hatted) or adequate resources in place and needs additional support, Vigilant has the knowledge and expertise to assist you in maintaining a strong Compliance Program.
Hedge Fund and other Private Managers have unique risks require specialized Compliance Programs due to their investment styles. Vigilant is experienced in registering Investment Managers, developing their compliance Programs, and operating those programs.
Outsourced Hedge Fund Compliance for CCOs
With the SEC’s proposed Private Fund Rules to enhance private fund investor protection in February 2022, there is an industry wide expectation that there will be an increased focus by the SEC on Private Fund Advisers, including Hedge Fund Managers.
Additionally, along with the increased focus by the SEC, Hedge Fund Managers will be required to adopt and implement new policies and procedures.
Do you have enough internal resources or the right external resources in place?
Can you keep up with your regulatory requirements not only today, but in the future, as your regulatory obligations increase?
Vigilant and its staff of experienced compliance professionals have extensive experience in managing and supporting the compliance programs of Hedge Fund Managers.
When partnering with Vigilant, we allow Hedge Fund Managers to focus on managing their Fund(s), growing their Limited Partner (“LP”) base, and other core competencies.
Through the following suite of solutions, Vigilant can either manage your entire compliance program or provide you with select support:
Vigilant's Suite of Hedge Fund Compliance Solutions
- Full Service Compliance Support to in-house Chief Compliance Officer (“CCO”)
- Utilize an expert staff of compliance experts without building a cost center
- Vigilant under the direction of the in-house CCO will perform all SEC compliance related obligations
- Including but not limited to, Annual Rule 206(4)-7 Report, Risk Assessment Matrix, Compliance Calendar Management, Key Vendor Due Diligence, Regulatory Filings, Code of Ethics & Personal Trading Management, Compliance Training, Cybersecurity Assistance, etc.
- Interim Outsourced CCO
- Flexible availability of expertise over a short to interim time period.
- Outsourced CCO
- Provides need for firms with limited resources and/or in-house expertise.
- Industry Best Practice Reviews of Hedge Fund Compliance Programs
- Mock SEC and/or NFA Examinations
- Mock SEC and/or NFA Interviews
- Tailored SEC and/or NFA Document Request Lists
- Formal Written Reports Evidencing such Reviews and Recommendations
- Web CRD, IARD, Edgar, NFA ORS Management
- SEC Registration & Exempt Reporting Adviser Registration (ERA)
- Form ADV Annual & Updating Amendments
- Form PF Filings
- Section 13 Filings (e.g., 13F, 13H, 13D, 13G)
- NFA & CFTC Filings
- Select Additional Filings
- Assistance and/or Management of SEC & NFA Examinations
- Supporting Documentation Compilation
- Supporting Documentation Review
- Drafting and Review of Submittal Letter
- Interview preparation
- Participation in Regulatory Examination Calls/Meetings
- Creation of Day 1 SEC Presentation
- Expert Consultant in SEC Enforcement Actions
- Security Breach Response Assistance
- In-person & Select Electronic Training
- Compliance Training
- Code of Ethics, Conflicts of Interest and Personal Trading Training
- Insider Trading and MNPI Training
- Online Cybersecurity Training Platform
- Automated Phishing Tests
- Industry “Hot Topic” Trainings (e.g., Senior Diminished Capacity, Relevant SEC Enforcement Actions, etc.)
Our Solutions Can Help with the Following
- Become and stay compliant with all relevant SEC compliance rules and other regulatory requirements
- Prepare and respond to regulatory reviews and inquiries
- Reduce and mitigate risk associated with a compliance audit or compliance failure
- Give you peace of mind in your compliance strategy
Hedge Fund Compliance Requirements
SEC regulations and requirements can vary based on your firm’s current circumstances such as the types assets managed. Below is an overview of who is required to register with the SEC.
Hedge Fund SEC Registration Requirements
Vigilant can help Hedge Fund managers determine whether or not they are required to register with the SEC. As it pertains to Hedge Fund managers, the Investment Advisers Act requires SEC registration under certain circumstances. They include, but may not be limited to:
- Your firm’s regulatory assets under management exceed $150 million dollars.
- For managers, solely to Hedge Funds with less than $150 million dollars as of your last fiscal year you may be eligible to register as an Exempt Reporting Adviser.
- Though not required, you are eligible to register with the SEC if you have more than $100 Million in AUM. Note: Most Hedge Fund managers elect to file as an Exempt Reporting Adviser.
Vigilant Can Help
If your firm is eligible or required to register with the SEC, you are required to adopt and implement certain policies and procedures.
Prior to registration, your firm’s compliance policies and procedures must meet certain Investment Adviser Act guidelines and/or regulatory guidance. There is no grace period following registration.
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, 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 prepares, reviews and files Form ADV, Form PF, 13F, 13G and 13H forms on behalf of our clients.
- Investigate past practices and transactions. Vigilant provides thorough forensic compliance solutions.
- Provide Outsourced CCOor CCO Support Solutions. A professional at Vigilant is well prepared to act as your outsourced CCO. With our offices in Boston, New York, Philadelphia, Dallas and Washington, DC, a Vigilant consultant is ready to serve your needs.
Most Firms Come to Vigilant for Ongoing Compliance Support
While we can help with registration, most firms find ongoing compliance support integral. We work with many new and established hedge fund managers firms to stay within compliance. This includes active compliance reviews and examinations, filings, support, and more. Contact us to see how we can help you manage and stay ahead of your compliance needs. We also offer select support as needed.
Vigilant is a full service Investment Management Solutions Firm servicing the regulatory needs of a diversified range of investment management clients. With staff located in New York, Philadelphia, Boston, Dallas, Washington, D.C., and around the country, Vigilant 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.