From the monthly archives:

March 2009

CFTC Fines BD/FCM For Books and Records Violations

March 31, 2009

Firm Fails to Institute Procedure for Bunched Orders
(www.hedgefundlawblog.com)
The fines can be hefty for breaking CFTC regulations or NFA rules.  We have seen a large number of actions both with the SEC and the CFTC as well as with the NFA.  Below is another example of a group who has been fined for failing to supervise [...]

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Bunched Orders and Separately Managed Accounts

March 30, 2009

Separately Managed Account Managers May Bunch Orders for Better Execution
One reason why the hedge fund structure is so popular with investment managers is that a single investment strategy can be implemented in one account.  Separately managed account managers, however, often have multiple accounts and need to execute the same transaction in each of those separate [...]

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NFA Prohibits CPO Firm From Doing Business

March 24, 2009

For Immediate Release
For more information contact:
Larry Dyekman (312) 781-1372, ldyekman@nfa.futures.org
Karen Wuertz (312) 781-1335, kwuertz@nfa.futures.org
NFA takes an emergency enforcement action against GlobeFX Club, Inc.
March 24, Chicago - National Futures Association (NFA) announced today that it has taken an emergency enforcement action against GlobeFX Club, Inc. (GlobeFX Club), a Commodity Pool Operator located in Homestead, Florida. Effective [...]

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Discussion about Forex Registration and the Series 34 Exam

March 16, 2009

(www.hedgefundlawblog.com)

Creating Series 34 Exam Prep Materials
One central issue in the investment management industry is increases in regulation of previously unregulated or lightly regulated activities.  The major area which will see direct regulation within the next 12 months is the retail off-exchange foreign currency industry.  As we have discussed, forex managers and those parties which solicit [...]

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Hedge Fund Law - State Law Issues

March 12, 2009

Dealing with Ambiguous State Securities Laws
An issue which often arises during the planning phase of the hedge fund formation process is whether certain state securities or investment advisory laws or regulations apply to a certain fact situation.  Many times these issues arise in the context of investment advisor registration (especially with regard to “custody” and [...]

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NASAA Proposes Multi-State No-Action Request Process

March 11, 2009

Currently each state has their own securities laws and their own interpretation of those laws.  While many of the laws and regulations are based on the same set of model rules, no two states seem to take the same interpretation with regard to the rules.  Enforcement is completely different as well.  This presents many problems [...]

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Schwab Drops Hedge Fund Platform

March 4, 2009

Self Directed IRA Investments in Funds Likely to Become Harder to Accomplish
In an earlier article about hedge fund IRA investments I discussed the general process which an investor will need to go through in order to invest their IRA assets in a hedge fund.  As a gross generalization the investor’s custodian will need to make [...]

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