Not only does the SEC require that hedge fund managers and advisory personnel comply with several regulations which address conflicts that arise from personal trading by supervised persons under the Investment Advisers Act of 1940, but recent trends indicate that investors prefer to allocate funds towards firms with robust Compliance Programs. However, many compliance teams still manually monitor employee trades to comply with the mandated code of ethics requirements. Which often leaves teams spending more time cross-referencing data rather than focusing on building a strong compliance program, ultimately impacting investor confidence.
ComplySci facilitates the digital transformation of Compliance Programs by enabling compliance teams to build customized workflows around their Code of Ethics policies, providing deep insights into employee risk. The integrated platform supervises/monitors conflicts of interest related to personal trading, gifts and entertainment, political contributions, outside business activities, marketing materials, IPOs, and private placements transactions. With ComplySci, investment advisors can avoid potential risks associated with employee activities and ensure that no conflicts of interest go unnoticed.
“ComplySci frees up time otherwise spent on administrative tasks, allowing me to focus on issues related to investments and other compliance areas that require a law degree.”-CCO and General Counsel of a Hedge Fund
Safeguard Your Firm’s Reputation
Despite the negative impacts a market abuse scandal can have on a firm’s reputation and an individual’s career, people continue to participate in non-compliant behavior. Firms need the right tools to proactively identify employee misconduct and evidence case management, prior to an examination. By leveraging technology that automates compliance workflows and analyzes underlying data, ComplySci protects firms from reputational damage.
RISE ABOVE THE COMPETITION
Boost LP Trust
In recent years, ILPA has elevated the importance of firm-wide ethics, as demonstrated by an increase in Governance Risk and Compliance (GRC) topics in their DDQ template. In today’s competitive fundraising environment, hedge funds can leverage compliance technology like ComplySci to demonstrate a commitment to ethical behavior and distinguish themselves from competing funds.
Gain Powerful Insights
When manually monitoring employee activities for conflicts of interest, compliance officers can get bogged down managing the flow of data, ultimately inhibiting their ability to add strategic value to the firm. By streamlining and automating compliance processes – that would otherwise live in spreadsheets – ComplySci allows compliance officers to analyze data and derive insights to strengthen the impact of their compliance program.