What services does ABM Global Compliance offer to hedge funds?

ABM Global Compliance provides a range of services including FCA authorisation, AML/CTF policy development, risk management frameworks, governance and internal controls, regulatory reporting, and ongoing compliance support.

How can ABM Global Compliance assist with FCA authorisation?

We assist hedge funds in obtaining FCA authorisation by preparing the necessary application documentation, establishing governance structures, and ensuring compliance with regulatory requirements.

What is included in AML/CTF & KYC/KYB policy development?

Our services include the development and implementation of anti-money laundering, counter-terrorist financing, and know-your-customer/business policies tailored to the specific needs of hedge funds.

Why is a risk management framework important for hedge funds?

A robust risk management framework helps hedge funds identify, assess, and mitigate potential risks, ensuring compliance with regulatory requirements and protecting the firm's reputation.

What does ongoing compliance support entail?

Ongoing compliance support includes continuous monitoring of compliance status, staff training, and updates on regulatory changes to ensure hedge funds remain compliant with evolving regulations.

Hedge Fund Compliance | FCA Regulatory Advisory Support

Overview

Hedge funds operate in a dynamic and high-risk environment where complex investment strategies and diverse structures pose significant compliance challenges. Regulators focus heavily on ensuring investor protection, preventing market abuse, and strengthening financial crime safeguards. For hedge funds, striking the right balance between agility in pursuing investment opportunities and maintaining strict compliance with regulatory frameworks is essential to sustaining growth, attracting investors, and avoiding enforcement action.

Key Compliance Challenges

Investor Accreditation and Suitability Verification

Hedge funds are typically open only to professional or accredited investors. Managers must not only verify investor eligibility at the outset but also conduct ongoing suitability assessments. This requires robust onboarding procedures, effective risk profiling, and transparent communication to ensure that investment strategies remain appropriate for investors.

Short Selling and Market Abuse Regulations

Given their frequent use of short selling and other high-risk trading techniques, hedge funds face heightened regulatory scrutiny. Firms must establish policies to prevent insider dealing, market manipulation, and breaches of market abuse regulations, while maintaining transparent reporting of short positions and trading activities.

Enhanced AML/CFT Due Diligence

Hedge funds are attractive targets for illicit actors seeking to exploit complex structures and cross-border transactions. Regulators therefore expect rigorous Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) controls, including enhanced due diligence on investors, effective transaction monitoring, and robust suspicious activity reporting frameworks.

Balancing Agility with Regulatory Expectations

One of the key challenges for hedge funds is maintaining flexibility in investment strategies while meeting increasingly stringent regulatory requirements. This requires building compliance frameworks that do not hinder innovation but still provide strong oversight, accountability, and adherence to FCA and international standards.

How ABM Can Help

Licensing & Structuring

ABM provides expert guidance on FCA applications, fund structuring, and regulatory approvals. We ensure that hedge funds are set up in line with legal requirements while maintaining the flexibility needed for diverse investment strategies.

Investor Due Diligence

Our team designs and implements rigorous onboarding procedures, including accreditation verification, investor suitability checks, and comprehensive KYC protocols. This ensures that only eligible and appropriate investors gain access to your fund.

Trading Compliance

We help firms develop trading policies that address short selling, insider dealing, and market abuse risks. Our frameworks ensure trading practices comply with FCA and international regulations, while enabling efficient execution strategies.

Audit & Assurance

We conduct in-depth AML/CFT audits, review KYC files, and prepare firms for FCA inspections. Our assurance services identify gaps, recommend improvements, and provide remediation support to strengthen compliance frameworks.

Training

To embed compliance into daily operations, ABM delivers specialized training on hedge fund regulatory obligations. Topics include conduct rules, AML/CFT requirements, and financial crime prevention, equipping staff at all levels with practical knowledge to maintain compliance standards.