Perception A: Alternative fund managers expect higher fines for breaking regulations

Perception A: Alternative fund managers expect higher fines for breaking regulations

3 april 2024

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New research from Ocorian, a market leader in regulation and compliance services for funds, corporates, capital markets and private clients, reveals that fines for alternative fund managers for breaking regulations could be set to rise.

Ocorian’s international study among fund managers at private equity, venture capital and real estate firms, reveals 79% expect the number and overall value of fines issued in their sectors for breaking regulations will increase, with 18% expecting a dramatic rise. Furthermore, 86% said their organisations are preparing or budgeting for a potential increase in fines they could face.

Nearly four out of five (79%) interviewed believe their market is over-regulated, but despite this 85% believe the level of regulation will increase over the next five years.

When it comes to their organisation adhering to regulations in the different jurisdictions they operate in, only 29% of those surveyed say it is not an issue – 30% say they find this very difficult to do this, and 37% say it is quite difficult. Some 59% believe their organisation will find it more difficult to do this over the next five years, and just 27% believe it will become easier.

Overall, just 30% of alternative fund managers interviewed believe their organisations are excellent at meeting their regulatory requirements, with 66% saying they are good at it and only 1% describing their ability to do so as poor.

Over half (54%) of those professionals surveyed say their organisation’s executive board takes regulation and compliance issues very seriously, and 41% say they take it quite seriously but could focus on it more.  Just 4% said they don’t take it seriously enough.

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