The proposed Hedge Fund Transparency Act would require private investment funds to maintain books and records that the SEC requires. Presumably, if the Act passes the SEC would promulgate some regulations addressing what it would require. One place to look would be Rule 204-2 under the Investment Advisers Act. The other place would be Rule … Read more »
Category: Investment Advisers Act
Post Your Form ADV
If you are a registered investment adviser you need to file a Form ADV with the SEC. Your Form ADV is searchable on SEC’s Investment Adviser Public Disclosure site. Post a copy of your filed Form ADV on your company’s website and/or link to your Form ADV on the SEC website.It shows you are registered … Read more »
Anti-Fraud Provision of the Investment Advisers Act
On September 10, 2007, the SEC Adopted Rule 206(4)-8. The SEC adopted this rule in response to the decision in Goldstein v. SEC, 451 F.3rd, 873 (in which the Court of Appeals for the District of Columbia ruled that the “client” of an investment adviser was the pool itself and not an investor in the … Read more »
Red Flags in the Madoff Case
Gregory Zuckerman of the Wall Street Journal put together a story on the Multiple Red Flags in Madoff Case. Steady returns in every kind of market Operated as a broker dealer with an asset management division. Why not simply act as a hedge fund and pocket big gains, rather than profit from trading commissions. “Why … Read more »
Researching the Federal Securities Law
The SEC has put together a collection of Researching the Federal Securities Laws Through the SEC Website. This guide provides an overview of how to research the securities law through the SEC website and is provided as a service to investors and members of the public. It is neither a legal interpretation nor a statement … Read more »
The Cumulative Effect of Gift Giving
The line between holiday gift giving and corruption is very gray. You need to be concerned that traditional holiday gifts are not actually holiday corruption bribes. Not only should you look at an individual gift, you need to look to gifts to the organization as a whole. One excessive gift may seem over the top … Read more »
Open Letter to CEOs of SEC-Registered Firms
The SEC’s Office of Compliance Inspections and Examinations has published an letter to CEOs of SEC Registered Firms about the importance of compliance programs during this time of “financial and market turmoil.” December 2, 2008 Dear CEO of SEC-Registered Firm: During this time of financial and market turmoil, the Office of Compliance Inspections and Examinations … Read more »
Hedge Fund Registration Act
Senator Charles Grassley of Iowa is looking to expand the registration requirements of the Investment Advisers Act. According to Jim Hamilton’s World of Securities Regulation, the Senator Will Reintroduce in 111th Congress Bill Requiring SEC Registration of Hedge Fund Advisers. The Washington Post story has Senator’s Grassley’s statement coming out of the House Oversight and … Read more »
Counting Clients under the Investment Advisers Act
With the demise of The Hedge Fund Rule, you can look to Rule 203(b)(3)-1 to help you figure out how to count clients. The key part of the rule from a private investment fund perspective is (a)(2)(i): A corporation, general partnership,limited partnership, limited liability company, trust (other than a trust referred to in paragraph (a)(1)(iv) … Read more »
Counting Clients under the Investment Advisers Act – The Demise of the Hedge Fund Rule
Section 203(b) lays out the exceptions to registration under the Investment Advisers Act. Section 203(b)(3) exempts you if during the previous 12 months (i) you have fewer than 15 clients and (ii) you do not hold yourself out as an investment adviser. For private investment funds, the general partner is generally considered an investment adviser … Read more »