TheStreet.com – With a Feb. 1 deadline looming, hedge funds are getting ready to register as advisers under a new Securities and Exchange Commission rule. Most funds are complaining about the new burden of legal and operational obligations, but unless they get exemption, there is no alternative but to comply. Nir Yarden, an attorney at the New York firm of Greenberg Traurig, which specializes in hedge fund and private equity work, gave TheStreet.com insights on the impact of the controversial rule on the industry.
TheStreet.com: What are the immediate implications of the registration rule for managers?
Nir Yarden: All aspects of a manager’s business will be subject to periodic SEC examination. Significant time and resources will be spent adopting and complying with various SEC-mandated procedures. Information will have to be submitted to the SEC on a regular basis and retention of business records will have to be maintained. For managers that avoid registration or are too small to register, constant diligence will have to be maintained to ensure that they do not trip over the registration rule.
