FundFire Quotes Fadi Samman on the Future of Compliance by Hedge, PE Fund Managers
FundFire, in its article “Alts Managers Must Bulk up for 'Real Time' Compliance,” quoted Akin Gump investment management partner Fadi Samman on PricewaterhouseCoopers’ “Alternative Asset Management 2020” report, which looks at, among other topics, the compliance landscape in five years.
The article notes that hedge and private equity fund managers, particularly larger outfits, are becoming more familiar with regulatory and compliance requirements. Samman said, “They understand what the requirements are, and that to be an efficient organization, the compliance function needs to be systematically embedded into the business. That’s easier said than done, of course.”
The report advises that, for more consistent controls on a global basis, managers need to shift from a compliance approach based to rules to one based on principles. Samman said, that, in firms of any size, this would mean “having everybody in the organization understand at some level what’s going on in the compliance role.” Companywide buy-in would mean that compliance would be handled smoothly and efficiently, rather than reactively, he added.
PwC’s report notes that alts managers will need to create more systematic programs that will include automated record retention and filing. Samman said that real-time data compilation on a fund will become increasingly important, all the more so for new funds. He suggest managers starting a new fund ensure “that all the data you will need to put in a report next year is pulled when the fund is created—rather than scrambling a year later when the report is due.”