Recently I have received a few good hedge fund law questions.  Please remember that these answers are general discussions of the law and should not be a substitute for actual legal advice.  This discussion does not form an attorney-client relationship, please see our disclaimer. **** Question: [with reference to the [...]

In two separate actions the NFA has effectively shut down two separate Commodity Pool Operators who were operating in the Northeast.  The press releases are reprinted below. **** For Immediate Release NFA takes emergency enforcement action against New York commodity pool operator February 9, Chicago – National Futures Association (NFA) [...]

Investors in Hedge Fund Won’t Need to Disclose Names and Addresses As we have discussed in many posts, Senators Grassley and Levin have introduced legislation which would require hedge funds to be regulated under the Investment Company Act.  The legislation would also require hedge fund managers to be registered as [...]

Information on Requesting and Submitting NFA Fingerprint Cards Those persons who are registering with the CFTC in any capacity (Associated Person of a CPO, CTA, IB) will need to submit fingerprint cards to the NFA prior to their registration being effective. It is also likely that the new forex registration [...]

Hedge Fund Regulation May Include Rule 204-2 As we have discussed, hedge fund regulation legislation has been introduced as the Hedge Fund Transparency Act.  This legislation calls for hedge funds to maintain such books and records that the SEC would require.  It is likely that the books and records required [...]

Hedge Fund Transparency Act of 2009 Overview This article provides an overview of the major provisions of the Hedge Fund Transparency Act of 2009.  There are two major things that the HFTA does: (1) increases regulation of hedge funds under the Investment Company Act and (2) requires hedge funds to [...]

Below is the actual text of the Hedge Fund Transparency Act.  (For the bill with page and line numbers please see: Hedge Fund Transparency Act (pdf)). **** 111TH CONGRESS 1ST SESSION S. To require hedge funds to register with the Securities and Exchange Commission, and for other purposes. IN THE [...]

The following article is by Christopher Addy, President and CEO of Castle Hall Alternatives, a hedge fund due diligence firm.  We have published a number of pieces by Mr. Addy in the past (please see Hedge Fund Due Diligence Issues, Issues for Hedge Fund Administrators to Consider and ERISA vs. [...]