Earlier this week, the Obama Administration called for all managers of hedge funds and other private investment pools (including private equity funds and venture capital funds) that exceeded a modest asset threshold to register with the U.S. Securities and Exchange Commission (“SEC”) under the Investment Advisers Act of 1940.
Moreover, the Obama Administration proposes that all investment funds managed by SEC registered investment advisers be subject to record keeping, investor disclosure and regulatory reporting requirements requirements and periodic examinations by the SEC.
As explained in the U.S. Treasury Department’s proposal entitled “Financial Regulatory Reform: A New Foundation,” by requiring SEC registration of investment advisers to hedge funds and other private investment funds, the SEC could monitor and assess whether these private funds have become so large, leveraged and interconnected so as to require further regulation.
It’s appears that the Obama Administration proposal goes well beyond the SEC’s previous efforts to regulate hedge fund managers. As these proposals to regulate private investment funds and their managers are considered in the U.S. Senate and House of Representatives, RIA Compliance Consultants will note key developments in our blog, Navigating the Regulatory Maze for Investment Advisers.
Posted by Bryan Hill
Labels: Hedge Funds