Confluence, a provider of regulatory reporting applications for fund managers, sees a business opportunity in the Securities and Exchange Commission (SEC) ruling on 27 October that hedge fund managers must register as investment advisers.
The ruling means hedge fund managers will need to increase the number and types of reports they distribute to investors. Additionally, hedge fund managers will become subject to increased recordkeeping requirements.
Confluence says several hedge funds already use its platform for pricing, performance and holdings reporting. The platform aims to provide an automated solution that gathers raw data, performs the necessary calculations, and creates and distributes complete reports to the required end-users.
Confluence reckons hedge funds need a centralized data repository to house all the pricing, performance and holdings data. It provides one.
The new SEC rule requires hedge fund managers with $30 million or more under management, and 15 or more clients to register as investment advisers under the Investment Advisers Act of 1940.