October 24, 2008
The Investment Company Act of 1940 (the “Investment Company Act”) is what gives structure to the hedge fund industry. The Investment Company Act provides very strict regulations for entities which are “investment companies” such as mutual funds. While hedge funds do fall within the definition of “investment company” they will seek an exemption from the [...]
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September 18, 2008
We have previously discussed the difference between a 3(c)(1) hedge fund and a 3(c)(7) hedge fund. Unlike a 3(c)(1) hedge fund where investors only generally need to be accredited investors and potentially qualified clients, all investors in a 3(c)(7) hedge fund must be “qualified purchasers.” A qualified purchaser is a greater requirement than [...]
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Grassley Clarifies Hedge Fund Registration Act
February 9, 2009Investors in Hedge Fund Won’t Need to Disclose Names and Addresses
As we have discussed in many posts, Senators Grassley and Levin have introduced legislation which would require hedge funds to be regulated under the Investment Company Act. The legislation would also require hedge fund managers to be registered as investment advisors with the SEC under [...]