WEST PALM BEACH, FL (HEDGECO.NET) – Hedge Fund investment marketers, also known as finders, have been warned that such activity requires registration with the Securities and Exchange Commission.According to published reports, Investment Management lawyers have been contacting hedge fund finders and informing them that they should register with the Security and Exchange commission asBroker/Dealers.
Hedge fund finders are generally regarded as third party marketing and distribution specialists for alternative investment products, such as hedge funds.
According to SEC investment lawyers, hedge fund finders are required by SEC laws to register their activities; however some finders have not done so, due to some kind of misunderstanding of the matter, by assuming that they are protected by the SEC �Exemptions� as outlined in the SEC �no action letter�. Such exemption, according to an unnamed spokesman is reserved for hedge fund managers.
For finders to use such exemptions they must also be hedge fund managers, other full- time hedge fund investment marketers must register with the SEC as Broker/Dealers. According to Terrance O�Malley of the New York based law firm, LeBeouf, Lamb, Greene & MacRae, those exemptions are few, and anyone acting as a finder may try to pass off such activity as a one time event if such was the case. O�Malley, however said he does not recommend such scenario.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: [email protected]
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