Dodd-Frank, Hedge Fund Registration and the SEC

April 25, 2013 James Heinsman Hedge Fund News

Ever since the enactment of the Dodd-Frank legislation there are new requirements for hedge fund registration, effecting the entire hedge fund industry. There are several important issues of concern under the Advisers Act, including fees, conflicts of interest, and hedge fund risk management, which need to be addressed by hedge funds today. Dodd-Frank also has an impact on advisers and hedge fund management.

Requirements of Dodd-Frank

Private advisers are no longer exempt under Dodd-Frank, therefore hedge fund registration is a requirement for private equity funds as well. All private advisers are now subject to the same registration, regulatory oversight, examination and other requirements just like all other SEC regulated investment advisers. The deadline for the new hedge fund registration to be registered with the SEC was March 30, 2012.

Based on information presently available to officials at the National Examination Program, it seems that 48 of the 50 largest hedge fund advisors around the world were registered with the Commission.

Obligations Under Advisers Act

Hedge fund registration places important requirements on newly registered advisers. The rules require that hedge funds adopt and implement written policies and procedures; establish a position for a chief compliance officer and fill it; maintain certain types of record keeping; annually filing a Form ADV; creating and putting into usage a code of ethics; making sure that advertising and performance reporting adheres to all the rules of the Act. It is important to remember that a registered hedge fund  is subject to examinations by the SEC.

Dodd-Frank, Hedge Fund Industry, hedge fund registration, hedge fund risk management, Hedge Funds,

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