Confluence, the provider of automated data management, introduces a new whitepaper for hedge fund administration executives. Entitled “Hedge Fund Reporting: The Change Imperative,” the new whitepaper discusses why hedge fund administration stands on the forefront of radical change and outlines the forces that are driving it.
A recent Rothstein Kass survey showed that 98% of hedge fund managers expect increased regulation of the hedge fund industry by the new administration; adding to burdens already imposed by FAS 157, FAS 161, and International Financial Reporting Standards. Indeed, the new administration has proposed additional regulations affecting hedge funds.
Along with regulatory mandates, investors are demanding holdings transparency, while auditors want greater control over reporting processes. And, asset managers are requiring that back-office staff and service providers demonstrate they have controls in place to manage new reporting demands; all while eliminating risks of errors, reducing costs, increasing scalability, and elevating service levels.
The whitepaper also provides practical advice to help ensure that reporting processes are sufficient to meet these heightened demands. It offers best-practice recommendations and includes a “Sample Checklist” to help administrators evaluate their operations, whether they rely on outside service providers or their own internal back offices.
“Mandates from investors, regulators, and auditors are driving significant change in hedge fund back offices,” says Kirk Botula, executive vice president and chief operating officer of Confluence. “Each group is demanding new levels of due diligence, transparency, and disclosure that are driving never-before-seen hedge fund reporting requirements. Technology and automation can improve processes and offer the speed, control and flexibility needed in this new reporting environment.”
L.D.