Hedge Funds
LATEST UPDATE:
SIFMA: President’s Working Group Statement on Hedge Funds ‘Thoughtful’ - February 22, 2007
SEC's Division of Investment Management issued a no-action letter Aug. 10 setting forth its views on issues affecting investment advisers to hedge funds in the wake of the recent Goldstein decision of the U.S. Court of Appeals for the District of Columbia Circuit. SEC posts Hedge Fund guidance, see guidance on how SEC-registered advisers may complete Form ADV www.sec.gov/divisions/investment/iard.shtml - August 10, 2006
DC Court Overturns SEC Hedge Fund Adviser Registration Rule:
- Court Opinion -- U.S. Court of Appeals For The District of Columbia, Goldstein, Phillip vs. SEC - pdf, June 23, 2006
- SEC Press Release: Statement of Chairman Cox Concerning the Decision of the U.S. Court of Appeals in Phillip Goldstein, et al. v. Securities and Exchange Commission - June 23, 2006
BACKGROUND
Hedge Funds have been receiving increasing regulatory attention. Among the significant developments this year have been the NASD's issuance of a notice to members in January 2003 reminding member firms of their obligation when selling hedge funds and the SEC's publication on September 29, 2003 of a report on the implications of the growth of hedge funds. The SEC report follows a lengthy review of hedge fund activity, which includes an SEC sponsored Hedge Fund Roundtable in May 2003 in which SIA members participated.
SIA has been actively engaged in addressing hedge fund issues including the filing of a comment letter in conjunction with the SEC roundtable and seeking clarification from the NASD regarding the application of their rules to various hedge fund activities.
In June 2006, US Court of Appeals panel unanimously struck down the SEC's recent hedge fund registration amendments to its regulations under the Investment Advisers Act.