Posts tagged “dodd”

SEC Proposes Quarterly Reporting For Biggest Hedge, Private Equity Funds

January 25th, 2011

The biggest hedge funds in the U.S. will face the toughest regulatory burden under a new risk-reporting rule proposed today by the Securities and Exchange Commission.

The SEC unanimously voted to seek comment on the new rule, which would require hedge funds, private equity firms and other private investment fund advisers to maintain a wide range of information for sharing with regulators. The proposed joint rule with the Commodity Futures Trading Commission will be considered by that regulator tomorrow.

The new rule, required by the Dodd-Frank financial regulation reform law, will fall most heavily on firms managing more than $1 billion in assets. SEC Chairman Mary Schapiro notes that the 200 such firms in the U.S. control more than 80% of private fund assets under management.

“The information required would be ‘tiered’ so that we would receive more detailed information from larger private fund advisers, rather than imposing the same reporting requirements on all private funds,” Schapiro said. “While the group of large private fund advisers is relatively small in number, it represents a large majority of private funds’ assets.”

Those firms will be required to make quarterly reports on assets, leverage, positions, valuation and trading. That information will be shared by the SEC and CFTC with the Financial Stability Oversight Council.

Today’s vote opens a 60-day comment period.

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No New Money For SEC, CFTC In Temporary Budget Deal

December 24th, 2010

Two of the U.S.’s top regulators—already crying poverty prior to receiving new powers and oversight mandates earlier this year—will have to make do without any more money for the new two-and-a-half months. At least.

Congress on Tuesday passed a stop-gap funding measure to keep the federal government up and running through March 4, but without the big increases Democrats had sought for the Securities and Exchange Commission and Commodity Futures Trading Commission. Both have been charged by the Dodd-Frank financial regulation reform bill with many more responsibilities than before; the SEC alone must write more than 100 new rules and has said it needs more staffers and resources to do the job.

The Dodd-Frank bill had envisioned doubling the SEC’s budget by 2015.

“Operating under the continuing resolution is already forcing the agency to delay or cut back enforcement and market oversight efforts,” SEC spokesman John Nester said. “The longer we operate under significant budgetary restrictions, the greater the impact.”

“Current funding is far less than what is required to properly fulfill our significantly expanded role,” CFTC Chairman Gary Gensler told a Congressional committee earlier this month.

While this week’s deal is temporary, it is unclear that a permanent budget bill will favor either agency. Republicans—who voted nearly unanimously against the Dodd-Frank law—are to take control of the House of Representatives next month and it is unclear that they will be willing to boost the regulators’ budgets.

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Hedge Fund Association Declares War on Self-Regulation

November 8th, 2010

On Friday, the Hedge Fund Association declared it opposes the creation of a hedge fund self-regulatory organization (SRO). In compliance with the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Government Accountability Office  is currently weighing the feasibility and benefits of establishing such an organization.

In its released statement, the HFA urged members of the hedge fund industry to unite in opposition to what could be another wave of regulation that they claim would be costly and redundant.

“In our discussions with the GAO, the Hedge Fund Association has let it be known that we stand in firm opposition to any potential hedge fund SRO,” said David Friedland president of the Hedge Fund Association and president of Magnum U.S. Investments, Inc.  “In light of the new registration requirements imposed by the Dodd-Frank Bill we believe that any SRO would prove to be entirely redundant and represent yet another regulatory cost that will suppress industry growth.”

“Hedge funds still represent the best outlet for entrepreneurship in the financial industry.  By continuously raising the regulatory costs for a fund to operate, the government is making it harder and harder for smaller fund managers to stay in business,” said Ron Geffner, vice president of the Hedge Fund Association and a partner at law firm Sadis and Goldberg.  “It is the HFA’s mission to speak up for the hedge fund industry and for entrepreneurship in finance.  This is why we simply cannot stay silent when such a potentially damaging provision is still under consideration by regulators.”

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SageTree Seminars to Teach Preparing for Compliance with Investment Advisers Act

August 9th, 2010

Douglas F. MacLean

Douglas F. MacLean of Armor Compliance has joined forces with SageTree Seminars to offer a timely seminar at 10 sessions throughout the country this fall teaching private equity, hedge fund managers and attorneys about the Investment Advisers Act. The recently-passed Dodd-Frank Act radically affects the compliance obligations of private equity and hedge fund managers. Managers with more than $150 million in assets under management ($100 million if advising any separately managed accounts) now need to register under the Investment Advisers Act, implement policies and procedures as provided in a compliance manual and appoint a chief compliance officer.

The day-long seminar is a unique, hands-on training led by a notable panel of compliance officers, attorneys and former regulators. Its purpose is to develop a solid understanding of the law and its impact on private equity and hedge fund managers.  The seminar is designed to also give practical advice on how to prepare for compliance, how to draft and file required documents, and how to draft and implement a compliance manual. Attendees should come away from this seminar with a detailed, step-by-step plan to ensure compliance with the Investment Advisers Act.

Mr. MacLean suggested that the seminar would be “quite appropriate for private equity and hedge fund professionals who will need to understand SEC registration and the Investment Advisers Act or attorneys who want practical exposure to IARD, Form ADV Part I and II, and a compliance manual, or perhaps simply need CLE credits in certain jurisdictions.” Those jurisdictions include New York, California, Texas, Florida and Illinois.

Three sponsors so far have signed onto the seminar series: TradeStation, Capital IQ and BDO Seidman. The seminars are likely to attract CFOs and COOs of private equity and hedge fund managers, in-house counsel and chief compliance officers, attorneys seeking to broaden legal practices, and other service providers to fund managers.

The seminar will specifically answer the following questions:

  • What is the new law?
  • Who is impacted?
  • What are the filing requirements?
  • What is the role of the CCO (Chief Compliance Officer)?
  • How do you navigate the IARD?
  • How do you file Form ADV?

In addition, attendees will receive instruction on understanding, drafting and implementing a compliance manual.

The announced schedule for this seminar is as follows:

  • New York 09/23/2010
  • Chicago 09/30/2010
  • San Francisco 10/05/2010
  • Los Angeles 10/07/2010
  • Boston 10/14/2010
  • Greenwich 10/21/2010
  • Miami 10/28/2010
  • Dallas 11/04/2010
  • Washington D.C. 11/11/2010
  • New York 11/18/2010

Those who would like further information about this seminar can visit http://www.sagetreeseminars.com.

SageTree Seminars LLC hosts hands-on educational seminars on legal, medical, financial and technology topics. Its philosophy is to provide nuts & bolts training to professionals using step-by-step curriculum and instruction to individuals, corporations and organizations.

Armor Compliance LLC offers comprehensive compliance protection services. It partners with investment advisers who do not wish to hire a full-time Chief Compliance Officer, yet require impenetrable compliance protection, as well as guidance navigating the ever-changing and complex U.S. securities laws. Douglas F. MacLean is the Founder and Managing Member of Armor Compliance. Prior to starting Armor Compliance, Mr. MacLean was an attorney at the international law firms of Latham & Watkins, K&L Gates and Bingham McCutchen for over 9 years. He is admitted in state and federal courts in the Commonwealth of Massachusetts and the State of New York. Mr. MacLean graduated cum laude from Harvard College in 1994 and graduated from Cornell University in 2000 with a J.D. from Cornell Law School and an M.B.A. from the Johnson Graduate School of Management.

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