1.  The Hedge Fund manager should implement arrangements for the regular monitoring of business risks and for adherence to all compliance requirements.

1.  The frequency and scope of monitoring should be determined by the size and complexity of the business, targeting compliance work on those areas of highest risk. Invariably, this will result in most work focussed on the investment process and related risks. Typically, a Hedge Fund manager would conduct a formal monitoring exercise on at least an annual basis which may be split into monthly or quarterly elements.

2.  The results of monitoring should be documented and communicated to management. Procedures should be in place to ensure that where weaknesses have been identified, these are promptly resolved, as well as processes to ensure that changes in regulation are assessed and properly implemented. 

2.  No applicable guidance.