Hedge Fund Blogs From HedgeCo.Net

Category Archives: law

Hedge Fund Compliance: Adviser SRO Begins To Take Shape

The Investment Adviser Oversight Act of 2012 (HR 4624) was introduced yesterday in Congress, according to FrontLine Compliance. The bill provides for the formation of a registered national investment adviser association which would serve as an advisory industry SRO. In summary, the bill calls for the following: The creation of an advisory industry SRO with full rule-making and examination authority […]

Hedge Fund Law Firm Seward & Kissel Achieves Injunction Against Bank Asset Sale

On February 27, 2012, the Delaware Court of Chancery enjoined the sale of BankAtlantic, the sole banking subsidiary of BankAtlantic Bancorp (BBX), to Branch Bank & Trust (BB&T). BBX had planned to sell $3.4 billion in deposits and $3.1 billion in performing loans and other assets to BB&T, keeping BankAtlantic’s criticized assets for itself in a “good bank/bad bank” transaction. […]

FINRA Proposes Rule to Require Additional Notice Filing and Delivery to Hedge Fund Investors

By Jay Gould –  (Pillsbury Winthrop Shaw Pittman LLP) - On October 18, 2011, the SEC released a notice of FINRA’s filing of Proposed Rule 5123 (the “Proposed Rule”) which would require FINRA members and associated persons to: 1) provide to investors disclosure documents in connection with private placements prior to sale and 2) file with FINRA such disclosure documents within […]

Sadis & Goldberg Hedge Fund Advisers Tax Alert

Exempt reporting advisers (“ERAs”) must prepare and file Form ADV Part 1A with the SEC and comply with certain other reporting and recordkeeping requirements under the Investment Advisers Act of 1940 (“Advisers Act”), such as §204A (insider trading prohibitions), §206 (anti-fraud provisions) and Rule 206(4)-5 (pay-to-play rules). ERAs are investment advisers to hedge funds and private equity funds that avoid […]

Hedge Fund Adviser Alert: New Form SLT Deadline Approaching

Holland & Knight - Effective September 30, 2011, the new Treasury International Capital (TIC) Form SLT is required to be filed by certain large investment advisers.  The first filing deadline will be October 24, 2011, for any investment adviser that has $1 billion or more of reportable securities (defined below) as of the last business day of the reporting month (to the extent […]

Sadis & Goldberg: Municipal Advisers Registration Alert

Municipal Advisers* are to register with the SEC  by December 31, 2011, according to hedge fund law firm Sadis & Goldberg. “Municipal Advisers” who missed the filing deadline last year may also be subject to enforcement action for acting as an unregistered “Municipal Adviser.” *The Dodd-Frank Act defines a “Municipal Adviser” as any person who provides advice to or on behalf […]

FINRA Alert: Broker-Dealer Operations Professionals Must Register

Effective October 17, 2011, certain personnel involved in the back office operations of a broker-dealer must pass a FINRA qualification examination, and subsequently register as an Operations Professional. The Rule further requires senior management having direct responsibility over such personnel to also register. Operations Professionals can be considered: (i) senior management with a direct responsibility over back office functions; (ii) […]

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 […]