Key Compliance Considerations for Fund Managers Using Alternative Data

Over 80 percent of hedge funds are using alternative data, including biometric data, geolocation data and web scraping, according to a recent survey conducted by Lowenstein Sandler. Although use of alternative data is expected to increase, stronger privacy regulations – such as the recently enacted California Consumer Privacy Act – will affect fund managers’ ability to source and use that data. The Cybersecurity Law Report recently spoke to Peter D. Greene, a partner at Lowenstein Sandler and author of the survey, to explore key compliance issues raised by using alternative data, including insider trading and privacy concerns, new and prospective regulatory issues in the U.S. and abroad, best practices for mitigating risk and managing third-party data providers, and ways newer forms of alternative data are affecting fund managers. See our three-part series on a fund manager’s road map to big data: “Its Acquisition and Proper Use” (Aug. 8, 2018); “MNPI, Web Scraping and Data Quality” (Aug. 15, 2018); and “Privacy Concerns, Third Parties and Drones” (Aug. 22, 2018).

To read the full article

Continue reading your article with a CSLR subscription.