The folks over at the Hedge Fund Compliance Blog point out that the Connecticut legislature has three bills pending that would regulate the hedge fund industry in that state. It seems strange that a state with such a big hedge fund industry would make their businesses more difficult. But these are strange economic times. It … Read more »
Category: Private Investment Funds
Hedge Fund Adviser Registration Act of 2009
Congressmen Mike Capuano of Massachusetts and Mike Castle of Delaware introduced the Hedge Fund Adviser Registration Act of 2009 (H.R. 711). The Act, if passed, would delete Section 203(b)(3) from the Investment Advisers Act of 1940. This section of the Investment Advisers Act exempts from registration an investment adviser who has fewer than 15 clients … Read more »
Electronic Filing of Form D and Amendments Becomes Mandatory on March 16
Beginning March 16, 2009, Form D filings are required to be made electronically on EDGAR. See SEC Release No. 33-8891 (February 6, 2008). Form D is commonly used for offerings made under the Rule 506 safe harbor to accredited investors. While the filing of a Form D is not a condition to the exemption, it … Read more »
Proposal to Tax Carried Interests as Ordinary Income
The Obama Administration has labeled their 2010 budget as A New Era of Responsibility. Part of that responsibility appears to be taxing carried interest as ordinary income. On page 122 of the budget there is a single line item: “Tax carried interest as ordinary income,” with projections of $2,742 million in 2011, $4,347 million in … Read more »
Stop Tax Haven Abuse Act
Senator Levin of Michigan has introduced the Stop Tax Haven Abuse Act (S.506). It is a wide ranging bill that would require disclosure of beneficial ownership of foreign entities, implementation of anti-money laundering by formation agents, limit patents on tax planning inventions, change the tax opinion standard for penalties, and many other changes. There is … Read more »
More Regulation Needed for Private Investment Funds?
Newedge Group’s Kirby Daley says no. He explains why the Obama Administration should not necessarily rush to impose stricter regulation of hedge funds in the wake of the Madoff case. See Fox News Video on Securities Docket. Read more »
Report of Congressional Oversight Panel on Regulatory Reform
Modernizing the American Financial Regulatory System: Recommendations for Improving Oversight, Protecting Consumers and Ensuring Stability (.pdf) In response to the escalating crisis, on October 3, 2008, Congress provided the U.S. Department of the Treasury with the authority to spend $700 billion to stabilize the U.S. economy, preserve home ownership, and promote economic growth. Congress created … Read more »
The Group of Thirty Report on Financial Reform
The Group of Thirty released their latest report: Financial Reform – A Framework for Financial Stability.(.pdf) The report focuses on flaws in the global financial system and provides recommendations to improve the systems. The report project was led by Paul Volcker, Chairman, and Tommaso Padoa-Schioppa and Arminio Fraga Neto, Vice Chairmen. The rrport does not … Read more »
Hedge Fund Transparency Act of 2009
Senators Chuck Grassley and Carl Levin introduced the Hedge Fund Transparency Act (S.344). Instead of amending the Investment Advisers Act of 1940 (as Senator Grassley tried with S.1402 in the 110th Congress), this bill would amend the Investment Company Act of 1940. The first step is defining a “hedge fund.” (Not an easy task) Rather … Read more »
First Report of the Walker Guidelines Monitoring Group
The Guidelines Monitoring Group has published its First Report (.pdf) on the UK private equity industry’s conformity with the Walker Guidelines. The Guidelines are intended to have funds enhance their reporting and the reporting by their large portfolio companies. They define a portfolio company as one with a market capitalization (prior to be acquired) was … Read more »