One of the problems with the securities laws in the United States is that there are two levels of rules to be cognizant of at any single time – the federal rules and the state level rules. For hedge fund managers that are registered as investment advisors with the SEC, [...]

Below is a question we received through the comment portion of this blog: A fund we participate in converted in mid-2007 from a 3(c)(1) fund to a 3(c)(7) fund. Upon receipt of the K-1 for the year, there was a large realized short-term capital gain realized with a large corresponding [...]

The SEC and NASAA have waived two separate charges for Investment Advisors for the 2009 calendar year.  The first charge being waived is a systems charge for the Investment Advisor to access the IARD system.  This fee used to be $30.  The second charge is the fee to access the [...]

(www.hedgefundlawblog.com) Article by Bart Mallon (www.forexregistration.com) This is part one of a two part discussion.  This article will provide an overview of the likely requirements for Forex Disclosure Documents.  The items in this Forex Disclosure Document Overview are based on the items discussed in “Disclosure Documents – A Guide for [...]

Oftentimes government sources of information provide us with good, comprehensive definitions like the discussion below on hedge funds.  The Government Accountability Office released a report on Defined Benefit Plans Investing in Hedge Funds that detailed pension plan investments in hedge funds (for our account of the complete article, please see [...]

Forex hedge funds have escaped registration requirements so far, but that is expected to change very shortly. Yesterday the NFA released a report which provided some detail on the proposed new Forex registration requirements.  While the NFA notes that the CFTC has not yet published its proposed forex rules, the [...]

There are many reasons why a registered investment advisor will choose to become a hedge fund manager.  Or, manage a hedge fund in addition to managing separately managed accounts.  Besides higher fees, there are other advantages of the hedge fund structure over the traditional asset management business. Advantages of the [...]

A common question for hedge fund managers which are registered as commodity pool operators is whether they also need to be registered as commodity trading advisors (CTA) with the NFA.  The answer is generally no. There is no need for a commodity-based hedge fund manager (i.e., CPO) to register as [...]

We have just posted a new podcast which covers many of the issues which we’ve discussed over the last week.  These issues include: NFA increases net capital requirements for Forex Dealers; DOL sues IA firm for ERISA violations; SEC Chairman Cox talks to Congress about hedge fund regulation; and, Barney [...]

It is that time of the year when hedge fund managers need to start making sure that everything is order in their back office for the beginning on next year.  As there are many things that can slip through the cracks as focus is usually on trading and performance, we’ve [...]