New Rules for Hedge and Private Equity Funds: Are You Prepared?

Registered investment adviser complianceThis summer, the Securities and Exchange Commission adopted new rules that require advisers to hedge funds and private equity funds to register with the SEC.

For many companies, complying with all of the new rules is a daunting task, particularly given the sweeping nature of the changes and the sheer paperwork involved. To help ease the burden, we will be blogging about what private equity and hedge fund advisers should be doing to ensure full compliance.

We invite you to check back regularly for new updates and contact our firm with any questions you may have.

Up First—the Registration Deadline.

One of the most significant changes under the new rules is that many previously unregistered advisers, particularly those to hedge funds and private equity funds, will now have to register with the SEC. These advisers will be subject to the same registration requirements, regulatory oversight, record keeping and other requirements that apply to  SEC-registered investment advisers under the Investment Advisers Act.

To provide advisers with a window to meet their new obligations, SEC has extended the deadline to March 30, 2012. However, it is important to note that advisers must submit an ADV application by mid-February, 2012 in order to meet the March registration deadline, as the SEC has 45 days to approve or deny the application. (We will discuss the requirements of the ADV application later this week.)

How We Can Help Ensure Compliance

The regulatory burdens placed on hedge funds and private equity groups have grown dramatically, leaving many companies overwhelmed by compliance issues. You should consult with experienced counsel to meet the new rules.

With the March 2012 deadline fast approaching, advisers to hedge and private equity funds should be beginning the registration process in earnest. If you are concerned about your company’s progress, please contact us to find out how we can help.

Eckerle Law offers a highest-quality and cost-effective alternative to the traditional law firm model for a wide variety of transactional and regulatory matters serving all your business law needs. Our experienced attorneys also provide a full range of compliance services for investment advisers, offering compliance tools that are tailored to fit the ever changing regulatory landscape as well as your business needs.

If your company would like to strengthen its business practices, please contact us today so we can leverage our experience to create real-life business and legal solutions to help your business thrive.