Start-up Hedge Fund Technology Essentials: Compliance, Archiving and Security

Start-up Hedge Fund Technology Essentials: Compliance, Archiving and Security

Start-up hedge funds have a lot going on when it comes to technology — security, compliance, archiving are just a few of the technical considerations firms need to include in their list of “must haves” when preparing to launch.

Offsite email storage and archival is on the top of the list. The SEC currently requires hedge funds to retain all external and internal communications, this includes emails, instant messages, Bloomberg and Thomson Reuters messages, for five to seven years. Archived data cannot be modified and should be archived in a Write-Only, Read Once (WORM) format.

Speaking of storage, SEC compliance regulation requires that firms must be able to promptly respond to requests for information, which means archived data must be efficiently searchable so firms can respond in a timely manner.

Email security is also of the utmost importance to hedge funds. The security of an email solution should not be assumed, an experience and knowledgeable IT partner will ensure security with outbound email encryption, spam filtering, anti-virus protection and data loss prevention (DLP), both internal and external. DLP ensures that message containing sensitive company information do not leave the firm’s network.

In the age of BYOD, hedge funds and financial firms should be especially cognsant of mobile device security. To protect sensitive data on employees’ smart phones, laptops and tablets, firms should use a mobile device management solution that supports a variety of devices and operating systems (Apple, Android and Blackberry). Additionally, mobile device management solutions should restrict and monitor app downloads, manage content, provide seamless encryption and password management and log unusual behaviors.

ACE IT Solutions understands the importance of technology to today’s financial firms. We are experts in implementing mission-critical IT solutions that provide maximum productivity, reliability and compliance for financial services firms, hedge funds, brokers, banks and asset managers. Contact us for more information at 646-558-5575.