Hedge and Private Funds

Policies and Procedures Development and Review

BRC’s consultants understand that a Fund’s policies and procedures are often considered the cornerstone to a successful compliance program. Since no two Funds are identical, BRC works in concert with each client to ensure that its policies and procedures are truly relevant, customized, and updated, to meet each client’s current business practices. BRC also understands that even the most robust policies and procedures may become outdated overtime if not reviewed and appropriately revised to meet the changes of a Fund’s business and fluid regulatory requirements. As regulatory examination findings are often related to “Inadequate Policies and Procedures”, it is essential for each Fund to conduct a periodic review of its procedures for adequacy. BRC’s clients also rely on its consultants’ ability to develop new policies and procedures when it has a material addition or change in its structure.

Annual Compliance Program Reviews

A Fund’s annual review should be specific enough to consider any changes in a Fund’s business, personnel, and the regulatory landscape in which it must comply. While it is not specifically mandated, the implementation of an annual compliance review program that incorporates the independent input of an experienced partner like BRC, is considered by many as more robust; in addition, many funds and their Board of Directors and Compliance Teams find benefits from the peace of mind that utilizing independent customized reviews provided by qualified third party.   While utilizing an independent team to assist in a Fund’s annual review requires an additional commitment of resources, such a commitment substantiates the Fund’s dedication to maintaining a strong culture of compliance, and not one that appears rich in conflict. BRC’s annual reviews certainly vary in scope due to the customized nature of our assessments, yet, at a minimum, each review is far-reaching, covering all general areas typically applicable to Funds, including, but not limited to:

• Policies and Procedures;
• Registration Implications;
• Regulatory filings;
• Marketing and Performance Advertising;
• Privacy and Cybersecurity; and
• Reviews of relevant agreements and operational due diligence.

Simulated Audits and SEC Inspection Support

In addition to conducting annual compliance reviews for Funds, BRC specializes in providing Funds with simulated or mock SEC inspections, helping ensure clients know what to expect when an SEC Examination is commenced or if their operations become subject to registration requirements. BRC also has found that through simulated reviews, Funds are often able to be notified of potential compliance gaps that may be present in their compliance programs and take pro-active corrective measures prior to these items being identified by regulatory examination staff, thus reducing reputation and financial risks associated with potential regulatory fines and sanctions. This pro-active exercise is often considered as a mitigating factor by regulatory examination staff. Onsite regulatory inspections can be one of the most stressful times faced by a Fund and its compliance staff. BRC offers its substantial direct regulatory experience by providing onsite consulting services, designed to assist Funds in interpreting, preparing, and completing responses to regulatory requests.

Investment Fund Registration Services

When seeking SEC or State registration, you may discover that the process is often more complex than first expected. During the process, BRC will become your partner, while helping to ensure proper communication between all parties, including regulators. During this process, BRC’s compliance consultants will assist your new Fund in preparing a relevant and complete registration package, designed to appropriately structure your Fund’s compliance program. Services typically included in our Registrations Program, include:

• Preparing required forms during the process, including Form ADV;
• Providing Assistance with IARD/Web CRD;
• Assisting with Exam Registrations Requirements for Associated Persons;
• Aiding in the preparation of correspondence relevant to the process; and
• Liaising – Unlimited telephone consulting during the Registrations process.

Marketing and Advertising Review Services

BRC’s consultants understand that marketing and advertising, including performance reporting requires finding the right balance or content and disclosure. It appears that marketing related deficiencies remain a common SEC Examination finding as well. Have BRC’s highly proficient consultants work alongside your sales team and compliance staff to find the precise balance appropriate for your marketing efforts. Whether it is part of an annual compliance review, or as part of a targeted compliance review, BRC’s marketing and advertising review services provide the experience you need on your side to effectively navigate through the array of rules and regulatory guidance related to marketing and advertising, including SEC “No-Action Letters”.

Customized/Bundled Compliance Solutions – Diazo Program

BRC offers bundled compliance services that enable Funds to customize products and services that fit their programs targeted areas, while keeping each client’s budgets in mind. The services offered through our Diazo Program have the effect of adding experienced compliance professionals to your Fund’s compliance staff, without the related staffing expenses of full-time hires. Our Diazo Program packages can be modified in duration to fit your organization’s specific needs and can be implemented based upon risk parameters to accommodate your budget. You can select from any combination of BRC’s Fund services to establish your own personalized solution.   If unsure of the most beneficial services to select based upon the risks of your organizations business activities, BRC can incorporate a risk based review service upon inception of our relationship in order to provide targeted recommendations concerning the services that would address the areas of your compliance program requiring further enhancement.