The New Realities For Hedge Funds: Compliance, Convergence & Growth
Welcome to Hedgeweek's page dedicated to hedge funds regulation and industry insights from KPMG . This section aims to provide you with the latest on regulation, expert views on the future of the industry and information about relevant upcoming events.
Last November saw the FCA conclude its consultation process pertaining to the AIFM remuneration code under AIFMD. This resulted in the publication of final guidance on remuneration rules at the end of January this year.
In the following Q&A Dan Roman, Head of the UK hedge funds practice at KPMG discusses what these remuneration rules are, and how they might impact hedge fund managers.
The CLO 2.0 market in the US has enjoyed a resurgence in 2013/14. According to Royal Bank of Scotland, the market grew from USD55.2bn in 2012 to USD81.6bn in 2013. Last month, CLO issuance reached USD11.8bn, a level not seen since May 2007, bringing YTD issuance to USD34.5bn; slightly up on USD30.2bn for the same period last year.
KPMG’s Robert Mirsky identifies three key trends in the hedge fund industry. »
Everyone knows that AIFMD compliance will be a long and arduous road, yet – even with looming deadlines now on the horizon – too few managers have summoned the courage to take the first significant steps. »
Following a consultation on its proposals, the Financial Conduct Authority (FCA) published its final guidance on the AIFMD remuneration regime on Friday 31 January 2014. This guidance, which has immediate effect, sets out how the AIFM Remuneration Code (SYSC 19B) should be interpreted and applied by alternative investment fund managers (AIFMs). »
There’s no denying that hedge funds remain in the upper echelons of the investment universe. Performance expectations remain high yet at the same time, as the industry becomes increasingly saturated with institutional assets, investors are giving managers more time to achieve their targets. »
Governance and risk management for Alternative Investment Funds in the AIFMD environment – a higher compliance burden or a potential competitive advantage? »
International financial centres play an important role in enabling the efficient flow of capital across borders, allowing hedge funds, in-particular, to attract investment capital globally. Historically the relatively light regulation of hedge funds has been viewed as one of the key features that facilitate these flows of capital, providing additional depth and liquidity to capital markets. »
On November 5, 2013, the U.S. Treasury Department (“Treasury”) and the Internal Revenue Service (“IRS”) issued final regulations1 that address when a transfer or assignment of a derivative contract does not result in a taxable event to the non-assigning counterparty for purposes of section 1001 and Treasury regulations section 1.1001-1(a). »
The consequences of the market collapse of 2008 are still overshadowing the market today. Gone are the days when hedge funds or buy-side firms would rely heavily on their counterparts’ data for the aggregation, deployment, and settlement of their margin calls. »
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