SEC to Hedge funds: No need to use “plain English”
| Aug 17th, 2010 | Filed under: Hedge Fund Regulation, Today's Post | By: Alpha Male |
|
Who can forget the SEC’s 2005 attempt to force hedge funds to register themselves as investment advisers? Regulatory antagonist and hedge fund manager Phil Goldstein’s challenge of the SEC’s “hedge fund rule” eventually led to it being vacated by the courts. Nonetheless, around half of US hedge funds remain SEC registered to this day (mainly because of the marketing imprimatur that accompanies such registration).
SEC-registered hedge funds may want to take note of another recent SEC ruling – this one pertaining to what the Commission calls the “brochure”, a questionnaire containing details on the investment adviser that is required to be hand to clients before they invest with the adviser. It appears the typical brochure is a little cryptic for clients to understand. In an effort to improve transparency, the SEC recently ruled that it must adhere to the Commission’s “Plain English Handbook“. This bulletin from law firm Akin Gump Strauss Hauer & Feld LLP describes the change in, well, plain English. (Hat tip: Opalesque).
To continue reading this article please login (at the right) or click here to learn more about accessing our archives.
Related Posts
- The SEC’s new hedge fund rule: Opening a can of worms, then kicking it down the road
- 2009: The year hedge funds finally stirred the regulatory hornets’ nest
- SEC: When is a Family Office not a Family Office?
- Alpha Hunter Bags An Elephant Hidden in Plain Sight
- Think hedge funds face an uphill battle on fees? It turns out that mutual funds may actually have it worse.
