Alternative Investment

HEHFP Module 13: Compliance


This is Module 13 of the Henley Executive Hedge Fund Program (HEHFP), which addresses compliance matters. It introduces the history and meaning of compliance and the concept of a Compliance Culture and how to implement one. The module covers common compliance controls and conflicts of Interest which has run through many of the prior modules. It also looks at future trends and issues in compliance.

This module is a 3.5-hour (approx. study time) course and is eligible for 2 SFC CPT/PWMA OPT hours.

Check out the other modules in the Program:


By the end of this module, you will be able to:
- Explain why Regulation exists and what Compliance is
- Understand what Compliance means to hedge fund managers
- List various ways in which conflicts of interest can arise from
- Describe practical ways to maintain compliance within the firm
- Know the compliance challenges faced by the firm 


Part 1 - Pre-reading materials
(i) Three Lines of Defence
(ii) Best Execution
(iii) Best Execution in Practice
(iv) Conduct issues with Soft Commissions
(v) Fair markets and the level playing field
(vi) Individual accountability for management
(vii) Insightful survey of risk - and compliance-related issues
(viii) HK SFC on current issues in managing risk
(ix) Level of Responsibility borne by the Chief Compliance Officer

Part 2 - Presentation Slides of the eCourse

Part 3 - Compliance eCourse*
(i) Introduction
(ii) Section 2 - History and Purpose
(iii) Section 3 - Risk-Based Compliance
(iv) Section 4 - Influence of Structure on the Risk Profile
(v) Section 5 - Compliance Controls
(vi) Section 6 - Conflicts of Interest
(vii) Section 7 - Trends and Issues in Hedge Fund Compliance
(viii) Concluding Remarks

Part 4 - Quiz*
The quiz consists of 15 questions where learners have 3 attempts to achieve at least 80% with correct answers as a pass.

Part 5 - Post-reading materials
(i) The story of Goldilocks and the Three Bears
(ii) Link to ACA
(iii) Responsible Investing
(iv) CIMA Guidance Notes
(v) Fund Manager Code of Conduct
(vi) Summary of AIFMD
(vii) FSB - policy recommendation
(viii) Global Risk Report 2020
(ix) Non-Compliance in Managing Funds
(x) List of Recommended Books, TV Programmes and Movies

* mandatory parts to complete

Who should attend

(1) Hedge Fund professionals seeking to enhance their knowledge
(2) Individuals looking to start a Hedge Fund
(3) Service providers e.g., Banking, Risk, Compliance and IT professionals, Lawyers, Fund Administrators


Relevant Subject
Type 9 - Asset management
Regulatory Compliance
SFC:2.00, PWMA:2.00
All Member: HK$775
Staff of Corporate Member: HK$775
Non-Member: HK$1550
Chinese Securities Association of Hong Kong (HKCSA): HK$1085