Testimony Concerning Regulating Hedge Funds and Other Private Investment Pools The SEC released a testimony from Andrew J. Donohue before the U.S. Senate about the regulation of hedge funds and other private investment pools.  According to Mr. Donohue’s statement, securities laws have not kept pace with the growth market and [...]

Bart Mallon, Esq. http://www.hedgefundlawblog.com ****UPDATE 10/27/2009**** The House Financial Services Committee voted on October 27, 2009 to pass the Private Fund Investment Advisers Registration Act of 2009 as H.R. 3818 (full text of bill as passed – please note that it is different from the earlier version of the bill [...]

Overview of Net Capital Requirement and Bond Alternative Hedge fund managers who need to register as investment advisors in their state of residence often have to deal with the net capital requirement issue.  Usually there will be two separate net capital requirements for the investment advisor (meaning the fund’s management [...]

California Based Hedge Fund Managers Receive Answers to Common Questions As I have discussed many times before, each state securities division has different rules and regulations.  In addition, each state has different interpretations of those rules and regulations. This makes it difficult for hedge fund managers to really know exactly [...]

SEC Commissioner Aguilar Proposes Registration For Funds with as little as $25MM of AUM Just today I had an opportunity to review the transcript of a speech by SEC Commissioner Aguilar in which he advocates that funds with as little as $25MM of AUM should register with the SEC.  Such [...]

Purpose of the Forms and Discussion of Recently Approved Changes & Requirements The Financial Industry Regulatory Authority (FINRA), is the largest independent regulator for all securities firms doing business in the United States, and is the entity designated as the filing depository by the U.S. Securities and Exchange Commission for purposes [...]

With all of the talk lately of new hedge fund regulations proposed by Obama and the likelihood of investment adviser registration for hedge fund managers, the focus has remained squarely on how to avoid hedge fund fraud situations and another Madoff.  The following post is from the blog by Rick [...]

Text of New Hedge Fund Registration Bill Earlier we posted a press release about the Private Fund Transparency Act and that it would subject hedge fund managers to registration with the SEC.  Below is the actual text of the statute. We will be bringing an in depth analysis of changes [...]

NASAA Requests Comments on Proposed Changes Form U4 is the form used by Investment Advisory firms to register investment advisor representatives with their firm.  It is also used by broker-dealers to register reps with their firms.  Form U5 is used by both IA and BD firms to terminate a representative’s [...]

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 [...]