JP Bruynes Quoted in HFMWeek on Hedge Funds and Delegation
JP Bruynes, a partner in Akin Gump’s investment management practice, was quoted by HFMWeek in the article “Exclusive: NFA questions firms over delegation.”
The article addresses whether the National Futures Association (NFA) is delving into the issue of delegation by hedge fund managers. According to the article, the NFA has been asking to see delegation agreements on exams and questioning firms on the matter.
Bruynes said firms that have told the NFA they do not “[delegate] all investment management authority in accordance with either (CFTC) Letter 14-69 or 14-126” have still received follow-up queries from the NFA. In some cases, he said, “the firm incorrectly answered the question ‘no’ when in fact a fully compliant delegation was already in place.”
Bruynes added that several firms “could not answer the question yes because either there was no delegation in place or the existing delegation did not comply with CFTC Letters 14-69 or 14-126, which letters supplemented and varied the guidance initially given on this point in the CFTC’s August 2012 FAQs.”