CBO Calculates Cost of House Hedge Fund Bill This past week the Congressional Budge Office (“CBO”) released a cost estimate of H.R. 3818, the Private Fund Investment Advisers Registration Act of 2009.  In a number of private conversations I have had about hedge fund registration over the last 9-12 months [...]

By Bart Mallon, Esq. (www.colefrieman.com) High Profile Case Highlights Issues for Hedge Fund Managers to Consider Insider trading is now an operational issue for hedge fund managers.  The high profile insider trading case involving RR and the Galleon hedge fund has put the spotlight directly on hedge funds again and [...]

Section 204A — Prevention of Misuse of Nonpublic Information Every investment adviser subject to section 204 shall establish, maintain, and enforce written policies and procedures reasonably designed, taking into consideration the nature of such investment adviser’s business, to prevent the misuse in violation of this Act or the Securities Exchange [...]

Bart Mallon, Esq. (http://www.hedgefundlawblog.com) Private Fund Investment Advisers Registration Act of 2009 (text of act) Below is the final text of the hedge fund registration bill as passed by the House Financial Services Commission. **** 111th CONGRESS 1st Session H. R. 3818 To amend the Investment Advisers Act of 1940 [...]

Hedge Fund Due Diligence Firm Discusses “Agreed Upon Procedures” We’ve published a number of thoughtful pieces on this blog from Chris Addy, president and CEO of Castle Hall Alternatives (see, for example, article on Hedge Fund Operational Issues and Failures).  Today we are publishing a piece by Chris which discusses [...]

Employees of Registered IAs Must Generally be Registered State-registered investment advisory firms need to make sure that their employees who are deemed to be “investment advisory representatives” are appropriately registered. This means that any employee (or owner) of the IA firm who provides investment advice or who has supervisory authority [...]

Practical guidance for CTA and CPO firms Commodity Trading Advisors (CTAs) and Commodity Pool Operators (CPOs) have been contacting me with greater regularity and we have decided to provide those firms with more detailed information on their registration and compliance requirements. Over the course of the next few weeks we [...]

Information on How to Buy ERISA Bond Purchasing an ERISA Fidelity Bond is essentially the same as purchasing a fidelity bond for an investment advisory firm and this article is meant to serve as guide as to cost and timing to secure one of these bonds. Overview Generally a manager will [...]

Hedge Fund Manager/Trader Settles Charges with SEC Insider trading cases pop up every now and again and most cases do not warrant highlighting – post-Boesky everyone in the securities industry is well aware that trading on inside information is illegal.  However, it warrants emphasis that the SEC will crack down [...]

ERISA Fidelity Bond Information Hedge fund managers who manages hedge funds which exceed the 25% ERISA threshold will need to purchase a fidelity bond.  The questions and answers below on the ERISA fidelity bonding requirements were prepared by the Department of Labor which is the governmental agency which is in [...]