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From The Opalesque Team: In its monthly client communication, law firm Clifford Chance gives an overview of the hedge fund regulation proposed both in the US and most recently, in Europe.
Analysis of the current proposals (if they should be enacted), have the firm expecting a greater additional burden on those managing private funds from European Union jurisdictions rather than from the US.
The US: Sources indicate Grassley/Levin act may not be adopted
Of the two current bills proposing additional legislation to regulate the US hedge fund industry, Clifford Chance noted that its sources in DC have indicated the Grassley/Levin Bill, which would require hedge funds to register with the SEC, may not be adopted.
“There is a growing sense that the legislation that is finally adopted in the US will require investment advisers to private funds to register with the SEC, but not require the funds themselves to register,” says the client communication.
The second US proposed bill is The Hedge Fund Adviser Registration Act that was introduced to the House of Representatives in January of 2009. This legislation would remove the exemption for SEC registration for those investment advisers with fewer than 15 clients in any 12-month period and likely see most hedge fund advisors requiring registration. However, it is the potential effect on non-US based advisors with which Clifford Chance sees worrying aspects.
“The SEC’s current approach ...................... To view our full article Click here
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