Access to Records under the Delaware Uniform Limited Partnership Act A vast majority of hedge funds are structured as limited partnerships under the Delaware Uniform Limited Partnership Act (the DULPA).  The code is very flexible and allows the limited partnership agreement (LPA) to be drafted in a very manager-friendly manner. [...]

Most Read Hedge Fund Law Articles for June I wanted to take a little time to thank all of the people who read this blog and who take the time to comment on articles or send me questions – your interaction helps make this site more informative and a better [...]

Draft Speaks of IA Registration for Hedge Fund Managers As you have probably heard by now, Obama will be presenting his plan for an overhaul of the financial system later today.  I have reviewed a copy of Obama’s Financial Regulation Proposal Draft and have reprinted some of the important aspects [...]

Endorses House Bill Over the Grassley-Levin Hedge Fund Bill Last week the North American Securities Administrators Association (NASAA) announced its support of the Hedge Fund Adviser Registration Act of 2009, a house bill introduced earlier this year by Representatives Capuano and Castle.  The Hedge Fund Adviser Registration Act is one [...]

Panel Discussion on State of Hedge Fund Industry Yesterday afternoon (May 6th) the Bay Area Hedge Fund Roundtable, a group of professionals within the hedge fund industry, gathered for a panel presentation entitled “Change…Critical Legal, Tax, Acounting and Regulatory Updates You Need to Know.”  The presentation was moderated by Pamela [...]

There are occasionally times when questions arise as to the meaning of certain undefined terms within statutes or regulations.  Practitioners have a variety of different resources which can help shed light onto these undefined terms or at least provide background information or context.  Below is the SEC’s Interpretive Release on [...]

Overview of Series 30 Exam The Series 30 exam is a National Futures Association sponsored exam which is required for those persons who are branch office managers of a NFA member firm (see our post on CPO and CTA Branch Office Information).  Generally if a NFA Member firm (such as [...]

Legislation Introduced to Eliminate Carried Interest “Loophole” As we are all well aware, the partnership structure of hedge funds allows the management companies of these funds to receive an “allocation” of the fund’s income.  Under general partnership taxation principles, this allocation is taxed to the management company (and the other [...]

Guide Focuses on Hedge Fund Risk Management and Other Operational Issues Unfortunately the new world of hedge fund investing and hedge fund due diligence has become more complicated and hedge fund management companies now need to increase their focus on operational and business issues.  While many managers are happy to [...]

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 [...]