• Dodd-Frank Financial Reform Act Alters Regulatory Regime for Advisers to Hedge Funds and Other Investment Advisers
  • August 16, 2010 | Author: Craig F. Zappetti
  • Law Firm: Saul Ewing LLP - Philadelphia Office
  • Hedge funds and private funds have come under increased scrutiny by Congress and the Securities and Exchange Commission (the “SEC”) because of the perception that the complex trading strategies and lack of transparency associated with these funds contributed to the financial system crisis and continue to contribute to volatile securities markets. The Private Fund Investment Advisers Registration Act of 2010, or Title IV of the Act, modifies the intrastate adviser exemption and eliminates the private adviser exemption. Many hedge and private fund advisers relied on these exemptions to avoid the requirement to register with the SEC as an investment adviser. As a result, managers of hedge funds, private equity funds and some venture capital funds will find themselves subject to the registration requirements and regulatory regime of either the SEC or a state securities regulator.