Mr. Tom Kehoe
MD, Global Head of Research and Communications

Tom Kehoe joined AIMA as research manager in October 2008 and heads up all research and communications globally for the association. In this role, Tom is responsible for creating and executing the association’s strategies to develop and maintain strong external stakeholder relationships. In doing so, he constructs the association’s narrative through original research and thought leadership as well as design, implement and promote the association’s communications and brand. In this capacity, he has authored more than 50 research and thought leadership pieces, which have been mentioned widely across the trade and business press as well as commented on radio and television.

He has been involved with hedge funds for 15 years. Prior to joining AIMA, Tom spent four years working in hedge fund research and due diligence with BNP Paribas in New York and Dublin.

Tom holds a Masters in Finance from the National College of Ireland, a graduate certificate in Investment Management from Dublin City University and is a Chartered Alternative Investment Analyst member (CAIA).

Clearer Skies Ahead for Hedge Funds in 2024

For good or for ill, by the end of 2024, the alternative investment industry is likely to have a greater degree of certainty on three fronts in many parts of the world where, recently, there has been nothing but politics, interest rates, and regulation. Alas, AIMA’s influence on central bank decision-making and voter intentions is beyond our powers of persuasion, so I will focus on our advocacy efforts on behalf of the alternative asset management industry.

Unsurprisingly, the US will continue to be the focus of AIMA’s policy and regulatory work in 2024.

The SEC has a considerable rulemaking agenda, resulting in AIMA submitting more regulatory proposal responses last year in North America than in any other region and more than at any other time in our history. In another first in the history of our association, AIMA felt compelled to take the unprecedented step to launch legal action against the national regulator regarding three of their final adopted rules, which we deem harmful to the industry we represent and are an overreach of the agency’s statutory authority: the Private Funds Adviser Rules, and the Short Sales and Securities Lending Rules. The court’s should make their decision in these cases this year.

Looking ahead to further changes to the industry that the SEC is likely to introduce. We expect further impactful rules regarding the definition of “Dealer”, safeguarding client assets, use of predictive data analytics, cyber risk management and outsourcing by investment advisers to be adopted in 2024 along with the adoption of the joint SEC/CFTC rewrite of many of the systemic risk reporting requirements in Form PF.

Although the US regulatory landscape will continue to evolve in several key areas this year, the emphasis is shifting to implementation, which will inevitably bring a degree of certainty for the industry. Further respite should arrive from the second half of this year as the intensity of new industry policy initiatives lessens with the Biden administration entering its latter phase, and all efforts shift to the US elections in November.

The picture will be much the same in the EU and UK as industry policymakers dial down the intensity of any new rulemaking as they prepare for upcoming elections.

Although this brief overview of the most pressing regulatory items expected to be finalised this year may appear largely negative in their potential impacts on the alternative investment industry, there will be some undeniable benefit to having clarity on what these rules will entail in their final version, especially if the Court finds in our favour where we have acted. The coming year will, therefore, no doubt be challenging, but alternative investment fund managers are nothing if not resourceful and have a proven track record of adapting to altered situations.

AIMA members can find out more about these issues – and many others besides – and access our library of resources to help with their implementation at AIMA.org.