Compliance concerns for large private funds

For large private equity (PE) and hedge funds, compliance is critical to successful operation, ensuring regulatory adherence and sustainable growth. As we navigate 2024, large funds face unique compliance challenges that require robust and efficient solutions.

This blog examines these entities’ top compliance issues and illustrates how Stand On The Right’s software facilitates compliance management effectively.

1. Cybersecurity and safeguarding data

The increasing digitalisation of financial data makes large funds prime targets for cyber threats. Enhancing cybersecurity measures is essential to protect sensitive information against potential breaches. Stand On The Right’s robust security protocols help in conducting regular risk assessments, establishing comprehensive incident response plans, and minimising human error risks through effective safeguards.

2. Regulatory reporting: Form ADVs and Form PFs

Large funds with regulatory assets under management exceeding $150 million face stringent regulatory reporting requirements. Stand On The Right simplifies these tasks by automating the compilation and submission of Form ADVs and Form PFs, ensuring compliance with SEC regulations through its full audit history capabilities.

3. Employee trade monitoring and conflict of interest

As staff numbers grow, monitoring employee trades and managing conflicts of interest become increasingly complex. Stand On The Right offers automated trade monitoring and manages pre-clearance policies to handle conflicts of interest effectively. This capability is crucial in preventing legislative breaches such as front running and insider trading, thereby maintaining the integrity of the fund’s operations.

4. Complex valuations, fees, and expenses

Accurate valuation of assets and proper allocation of fees and expenses are pivotal for large funds, as emphasised by several SEC risk alerts. Stand On The Right aids in this area by providing tools to systematically monitor transactions and activities, ensuring compliance with partnership agreements and reducing inaccuracies in financial reporting.

5. Scaling compliance: the role of Chief Compliance Officers (CCOs)

The role of CCOs is increasingly demanding in large funds, requiring significant resources to manage compliance effectively. Stand On The Right supports CCOs by offering technologies that automate routine compliance tasks, allowing them to focus on strategic compliance initiatives and reducing the costs associated with maintaining a large compliance department.

Embracing technology for compliance

By leveraging Stand On The Right, large private funds can enhance their compliance processes, improve operational efficiency, and ensure regulatory compliance. The software’s intuitive interface and tailored workflows facilitate a proactive approach to compliance, reducing manual labour and paperwork, and increasing overall productivity.

Learn about how Stand On The Right can transform your fund’s compliance strategy by viewing the software’s features. Our solutions are designed to meet the complex needs of large private funds, helping them navigate the regulatory landscape with confidence and ease.

Get in touch to find out more!

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