Jonathan Saxton Opalesque Industry Update – Hedge fund legal and regulatory support providers are expressing their approval of the SEC deadline extension given to hedge fund managers required to register with the regulatory agency.
“We believe that the SEC’s decision to delay the registration deadline was due to the fact that the previous timeline was too tight for all involved,” said Jonathan Saxton, Director of Global Risk and Regulation at Kinetic Partners in a statement issued by the firm. “Now the funds have been given enough more time, they must make sure they use it to properly prepare and develop appropriate systems and controls as well as a strong internal culture of compliance. The extra time helps the industry but also means that they will have less of an excuse for not being fully prepared.”
The last part of that statement echoes the worries that many legal and regulatory service providers had over the past six to nine months, as they saw only a fraction of hedge funds moving towards registration ahead of the initial July 2011 deadline. While most of that was due to the SEC’s slow reveal of final rules for the regulation, it was only last week that the agency officially extended the deadline. Prior to that the entire industry was speculating on the odds that the SEC would push back the deadline.
Advisors now have until March 30, 2012 to comply with the new registration regulations.
Some of the key highlights of the final rules and regulations that Kinetics Partners points out to its clients are:
Changes to Form ADV and information to be disclosed includes: