1.  Management should be committed to ensuring that employees:

1. have the requisite level of knowledge and experience for the tasks they are undertaking;
2. are and remain competent for the work they undertake; and
3. are appropriately supervised and that their competence is regularly reviewed.

Senior management should be aware of the dependence which can be placed upon key individuals in a small team and seek to mitigate the risks involved if one of these key individuals leaves (or is otherwise not available to) the Hedge Fund manager.

1.  Where possible, the Hedge Fund manager should seek to have alternates in place for all significant roles. Managers should give consideration to purchasing professional indemnity and directors’ and officers’ liability insurance.

2.  Hedge Fund managers should remain alert to the need for continued training and development of employees, particularly in rapidly changing investment environments or in cases where employees are changing or undertaking new roles.

2.  All employees should undergo both induction training and continuous professional development (much of which may be informal in nature). Such training should be designed to introduce the employee to the key business systems, procedures and compliance requirements and to ensure that employees remain up to date with the market, product developments and with changes in rules, laws and regulations.