As has been widely reported, the Senate passed the Financial Reform Bill setting the stage for President Obama to sign the bill within the next week.  With respect to investment advisors, one of the central items is the private equity and hedge fund registration requirement.  We will be reporting further [...]

Are States Equipped to Handle Increased IA Registrations? Under the new financial reform bill, expected to be signed into law sometime in July 2010, the state securities divisions will play a larger role in the oversight of investment managers.  Under the current system, investment advisers (who generally provide financial planning services or [...]

Investment Advisers Act Rule 206 (4)-5 Today the SEC approved new Rule 206 (4)-5 under the Investment Advisers Act of 1940 which prohibits investment advisers from making political contributions in certain situations.  The new rule has three essential elements: Investment advisory firms and employees are prohibited from managing assets for [...]

Financial Reform Bill Overview & Hedge Fund Registration Requirement Well over a year after Lehman and Madoff, Congress has finally drafted a single financial reform bill which will be voted on by the House and Senate before being signed by President Obama.  Below we have reprinted an overview of the [...]

Financial Reform Bill May Devastate Overburdened State Securities Divisions As many states are facing huge budget shortfalls, government services have been cutback and certain states have furloughed workers in certain divisions. In a number of states (including California) these budget cuts have affected the state securities divisions and accordingly the [...]

Adviser Registration, Accredited Investors, Carried Interest, Insider Trading, Cap and Trade Below are some thoughts on some of the major issues over the last couple of weeks. Have a great Memorial Day Weekend! **** Hedge Fund Regulation and Registration – While the Private Fund Investment Advisers Registration Act of 2010 [...]

Forex Managers Required to be Registered Under New Regulations The much anticipated off-exchange retail foreign currency regulations were proposed today by the CFTC.  The release announcing the publication in the Federal Register is reprinted below and can be found here.  We will be providing an overview of the major provisions [...]

As we discussed in an earlier post, the SEC proposed new rules and amendments to existing rules under the Investment Advisers Act (the “Act”) to implement certain provisions of the Dodd-Frank Act related to hedge fund registration. In summary, the new rules: clarify eligibility for SEC registration for hedge fund and [...]

As has been reported by a number of groups the Private Fund Investment Advisors Act of 2009 was approved by the House Financial Services Committee by a vote of 67-1.  The proposed bill underwent a number of significant changes during the committee meeting.  The attached document shows (in redline format) [...]

Bart Mallon, Esq. (http://www.hedgefundlawblog.com) Private Equity Funds Not Excluded Today the House Financial Services Committee voted to require hedge fund managers to register with the Securities and Exchange Commission.  While private equity firms are also required to register under the proposed bill, managers to venture capital funds are excluded from [...]