Via Sadis & Goldberg – All hedge fund managers that invest in “new issues” will need to update their funds’ Subscription Documents for new investors and recertify their existing investors in order to continue to be eligible to purchase “new issues” under the “Spinning Prohibition Rules” adopted by the Financial Industry Regulatory Authority, Inc. (“FINRA”).
The Spinning Prohibition Rules generally prohibit a FINRA-member broker-dealer from allocating “new issues” to accounts (including hedge funds) in which a beneficial interest is held by executive officers and directors of certain current, former or prospective investment banking clients of such broker-dealer (“Restricted Investors”). The original effective date for the Spinning Prohibition Rules was May 27, 2011 and such date was recently extended by the Securities and Exchange Commission until September 26, 2011.
More here
About Alex Akesson
Alex has been specializing in hedge fund and alternative investment news since April 2006. Working mainly in research and manager interviews, she has published breaking news on the hedge fund industry on her blog, as well as several industry publications.
Her access to hedge fund managers gives her insight into news stories as well, and the ability to track press releases and other breaking news in real time.
Hedge Fund Alert: “Spinning Prohibition Rules” effective Sept 26
Via Sadis & Goldberg – All hedge fund managers that invest in “new issues” will need to update their funds’ Subscription Documents for new investors and recertify their existing investors in order to continue to be eligible to purchase “new issues” under the “Spinning Prohibition Rules” adopted by the Financial Industry Regulatory Authority, Inc. (“FINRA”).
The Spinning Prohibition Rules generally prohibit a FINRA-member broker-dealer from allocating “new issues” to accounts (including hedge funds) in which a beneficial interest is held by executive officers and directors of certain current, former or prospective investment banking clients of such broker-dealer (“Restricted Investors”). The original effective date for the Spinning Prohibition Rules was May 27, 2011 and such date was recently extended by the Securities and Exchange Commission until September 26, 2011.
More here
About Alex Akesson
Alex has been specializing in hedge fund and alternative investment news since April 2006. Working mainly in research and manager interviews, she has published breaking news on the hedge fund industry on her blog, as well as several industry publications. Her access to hedge fund managers gives her insight into news stories as well, and the ability to track press releases and other breaking news in real time.