18f-4: 1 Year To Comply!

Today starts the 1 Year Countdown to comply with the Securities and Exchange Commission's rule?18f-4 Use of Derivatives by Investment Companies and Business Development Companies. The rule requires funds to implement significant derivatives risk management capabilities, Value-at-Risk (VaR) calculations, reporting requirements and recordkeeping.?These regulations are based on the CFTC and SEC Dodd-Frank Act requirements that have tripped up dealers, caused regulatory penalties and resulted in large fines.

Dedicated resources and a new support infrastructure will be required to monitor the daily VaR calculations for accuracy, review daily risk reports, correct errors, identify real versus technical limit breaches, notify the SEC as required and produce weekly and quarterly Risk Management Committee, Board of Director and SEC reports?

NextGen Strategic Advisors?has built an SEC 18f-4 compliance managed service specifically designed to support Investment Companies and BDCs cost effectively comply with the requirements.?Our senior managers were Chief Risk Officers for SEC & CFTC regulated entities.?We have managed derivatives risks for SEC regulated entities, developed industry recognized SEC compliance tools and written SEC compliance manuals for numerous dealers.? For more information about our Managed Services Offering, please contact?Gary Mandelblatt, Managing Partner, 908-313 1056,? [email protected],?