There are three and half bills in Congress for regulating private investment funds. The Hedge Fund Adviser Registration Act of 2009, the Hedge Fund Transparency Act of 2009 and the Private Fund Transparency Act of 2009 are all sitting in committee. The half is the proposal from the Obama administration: Private Fund Investment Advisers Registration … Read more »
Category: Private Investment Funds
Corporate and Financial Institution Compensation Fairness Act of 2009
I had largely ignored the Corporate and Financial Institution Compensation Fairness Act of 2009 (H. R. 3269) thinking it was limited to public companies and banks. I was surprised to find that it also sweeps up investment advisers, and therefore private investment funds, with assets greater than $1 billion. The bill does focus mostly on … Read more »
Pension Security Act of 2009 and its Effect on Private Investment Funds
I missed the introduction of the Pension Security Act. Rep Michael Castle introduced the bills in January and it was referred to the Committee on Education and Labor. It’s a short bill, but would have a big effect on the disclosure of investments in private investment funds. The bill revises a section of the Employee … Read more »
AIMA Warns of Global Impact of EU AIFM Directive
The Alternative Investment Management Association has warned that the European Commission’s draft directive on Alternative Investment Fund Managers would negatively affect fund managers and investors around the world if enacted into European law. The Directive applies primarily to any Alternative Investment Fund Managers which is established in an EU Member State and which provides management … Read more »
Placement Agents Fight Bans
Placement agent bans were put in place at the New York State Common Retirement Fund and the New Mexico State Investment Council because of the pay-to-play scandals at those pension funds. Now the SEC has proposed a ban on using placement agents when seeking capital investments from public pension funds. A coalition of placement agents … Read more »
Indemnification for Investment Professionals by Their Funds
A recent case decided some issues relating to the indemnification of private equity and venture capital professionals by their affiliated funds in connection with their service as directors and officers of their portfolio companies. Stockman v. Heartland Industrial Partners, L.P., (July 14, 2009), Delaware Chancery Court. David A. Stockman and J. Michael Stepp were investment … Read more »
Regulating Private Investment Funds
Last week the Subcommittee on Securities, Insurance, and Investment of the United States Senate Committee on Banking, Housing and Urban Affairs held a hearing on regulating private investment funds. [You can see an archive of the hearing.] The video shows lots of empty Senator chairs at the hearing. Majority Statement from Senator Jack Reed Minority … Read more »
SEC to Consider Pay to Play Rule for Investment Advisers
At the SEC open meeting on Wednesday July 22, the Commission will consider whether to propose a rule to address “pay to play” practices by investment advisers. The proposal is designed, among other things, to prohibit advisers from seeking to influence the award of advisory contracts by public entities through political contributions to or for … Read more »
Private Fund Investment Advisers Registration Act of 2009
The Department of Treasury released its proposed legislation in increase the regulatory oversight on private investment funds: Private Fund Investment Advisers Registration Act of 2009. The Administration’s legislation would require that all investment advisers with more than $30 million of assets under management to register with the SEC. This is presumably the Obama plan and … Read more »
Special Report on Sovereign Wealth Funds
Pensions & Investments published a Special Report on Sovereign Wealth Funds. The report is based on a survey conducted in April by the Oxford University Center for Employment, Work and Finance: Oxford SWF Project. Sovereign wealth funds are perceived to be shrouded in mystery because, like many private investment funds, they do not publicly report … Read more »