Abstract:
Purpose  The aim of this paper is to provide hedge fund and other private fund managers with a brief recap of regulatory changes in 2010 and a reminder of certain Âbest practices they should consider as they prepare for 2011. Design/methodology/approach  The paper provides 2010 regulatory highlights, including relevant provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Pay-to-Play Rule, and amendments to Form ADV. It outlines issues for consideration in 2011, including preparation for SEC registration (if applicable), review of compliance policies and procedures, updating Form ADV, Form D and Blue Sky Filings, Âcustody rule (Rule 206(4)-2 under the Advisers Act) compliance, other regulatory filings that may be required (including Form 13F, Schedule 13D/13G, and Forms 3, 4, and 5), CFTC regulatory requirements for investment managers who trade or advise others on trading commodity futures contracts, certain tax considerations (including foreign bank, brokerage and other financial account (FBAR) reporting requirements), the Foreign Tax Compliance Act of 2009 (FACTA)), ERISA and Department of Labor considerations, fee deferral arrangements, and offering document updates. Findings  This summary is not intended to provide a complete list of an investment manager's obligations relating to its compliance with applicable rules and regulations or to serve as legal advice. It does not address any non-US or state law requirements and has not been tailored to the specific needs of a particular investment manager's business. Originality/value  This paper provides useful summary practical guidance from experienced financial institutions lawyers.
Purpose  The aim of this paper is to provide hedge fund and other private fund managers with a brief recap of regulatory changes in 2010 and a reminder of certain Âbest practices they should consider as they prepare for 2011. Design/methodology/approach  The paper provides 2010 regulatory highlights, including relevant provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Pay-to-Play Rule, and amendments to Form ADV. It outlines issues for consideration in 2011, including preparation for SEC registration (if applicable), review of compliance policies and procedures, updating Form ADV, Form D and Blue Sky Filings, Âcustody rule (Rule 206(4)-2 under the Advisers Act) compliance, other regulatory filings that may be required (including Form 13F, Schedule 13D/13G, and Forms 3, 4, and 5), CFTC regulatory requirements for investment managers who trade or advise others on trading commodity futures contracts, certain tax considerations (including foreign bank, brokerage and other financial account (FBAR) reporting requirements), the Foreign Tax Compliance Act of 2009 (FACTA)), ERISA and Department of Labor considerations, fee deferral arrangements, and offering document updates. Findings  This summary is not intended to provide a complete list of an investment manager's obligations relating to its compliance with applicable rules and regulations or to serve as legal advice. It does not address any non-US or state law requirements and has not been tailored to the specific needs of a particular investment manager's business. Originality/value  This paper provides useful summary practical guidance from experienced financial institutions lawyers.