Hedge Fund Disclaimer
How to write a hedge fund disclaimer
One of the more unusual requests (in my opinion) that we receive on this site is how to write a hedge fund disclaimer. I think that this is unusual because I would assume that most hedge fund managers would want to make sure that anything with a disclaimer has [...]
Starting a Hedge Fund – Primer for Start Up Hedge Fund Managers
How to Start a Hedge Fund
Many future hedge fund managers have misconceptions about how to start a hedge fund – either they think it is a very basic process that takes no time or resources, or they think that it will take too much time and will be cost prohibitive. For most start up hedge [...]
Registration Renewal For Brokers (IARD Notice)
It is that time of the year for registration renewals. Renewal notices for investment advisor registration renewal were sent out by many states this week. Additionally, brokers and brokerage firms will need to renew all of their registrations. The following is the registration renewal notice I recieved today. If your firm needs help with registration, [...]
Authority of Various Securities Laws and Releases/ Interpretations
The reference below comes directly from the SEC website and provides the reader with a good overview of the different laws and rules which govern the hedge fund industry, and the order in which those rules are applied (that is, the securities statutes trump SEC interpretive releases). This reference is important for hedge fund managers [...]
California Investment Advisor Exemption for Certain Hedge Fund Managers
In the article Connecticut Hedge Fund Registration Exemption, we discussed that certain states like Connecticut provide administrative orders allowing hedge fund managers an exemption from the registration provisions under certain circumstances.
Similarly certain states have provided a similar exemption to hedge fund managers through the securities commission rule making process. For example, California Rule 260.204.9 provides [...]
Hedge Fund Soft Dollars - Permitted Soft Dollar Practices
This memorandum contains information regarding eligible and ineligible uses of soft dollars within the safe harbor found under Section 28(e) of the Securities Exchange Act of 1934. This memo is structured in three parts: (i) discusses, generally, the eligibility of research services; (ii) discusses, generally, the eligibility of brokerage activities; and (iii) discusses, generally, mixed-use [...]
Life Settlement Hedge Funds – Are Life Settlements Securities?
Many life settlement hedge fund managers which establish life settlement hedge funds come from the insurance industry (although we have dealt with managers who are also registered as investment advisors). Accordingly, many managers are surprised when we discuss the issue of potential investment advisory registration. The central question is whether life settlements are securities.
Banks and Hedge Fund Oversight: GAO Report
This article is part of a series examining the statements in a report issued by the Government Accountability Office (GAO) in February 2008. The items in this report are important because they provide insight into how the government views the hedge fund industry and how that might influence the future regulatory environment for hedge funds. [...]
Life Settment Case Law after “Life Partners” - SEC v. Mutual Benefits
Many individuals involved in the life settlement industry point steadfastly to the “Life Partners” case when asked if life settlements are securities. While “Life Partners” is a very important case in the life settlement industry, it should be noted that the case is not binding on any jurisdiction outside of the DC Circuit which means [...]
Sale of Viatical Investments as Securities (Washington State)
This release is from the Washington State Department of Financial Institutions.
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In 1999, Securities Administrator Deborah Bortner sent out a letter to insurance agents in the State of Washington regarding the applicability of the state securities laws to the offer and sale of viatical settlement contracts to investors. Under such a contract, a terminally ill person [...]