Coverage will continue for the registration of the decision of the Court fund advisers yet to Strike Down SEC rule

Small and independent hedge funds received a boost on Friday by a favorable court that struck a controversial law that require hedge funds to register with the Securities and Exchange Commission decision. However the provisions of the decision, many advisors Fund are expected to continue to register voluntarily in order to attract and retain investors.

In 2004, the SEC amended one fund key exemptions relied on consultants to avoid registration with the SEC as an investment advisor. Previously, the managers with fewer than 15 clients were not forced to register as an investment adviser.In the old rule, each managed fund Advisor was considered a "client", regardless of the number of individual investors in the most cases, fondo.En administrators advised within 15 funds could avoid registration as an investment advisor.

By virtue of the amendment to rule 2004, SEC has changed investment within the meaning of individual investors in the funds to administra.Por Advisor defining a "client" therefore, with few exceptions, the modification of the rule of 2004 forced assessors 15 investment fund management background or more investors (and more than 30 million dollars in assets) to register as the adoption of the amendment to rule 2004 inversiones.Desde Advisor, 1,260 new fund advisers have registered with the SEC.

Decision of the Court of appeal last week hits the amendment to rule in 2004, which shall relieve many smaller funds the burden and costs of registration of investment adviser, and random inspections of SEC compliance

This is a great development in the regulation of hedge fund u.s. and reach a signal of a potential backlash against the SEC attempted to expand their regulations in this area.However, nobody expects that the SEC to close the door completely on the regulation of the hedge fund.Y while some counsellors may elect to cancel to avoid the cost of compliance, many funds is expected take a "wait and see" approach in anticipation of potential SEC promulgation of new rules in reaction to the decision of the Court.

However the provisions of the decision of the Court, many institutional investors appreciate the transparency that registration offers investors and will continue to require registration as part of their criteria of investment business background, and especially for small and independent funds, institutional investors are the Holy Grail.As a result, many advisors continue to voluntarily register for the compliance burden.

While registration is a modest charge for advisers, there are ways for independent consultants maintain their registration status without compliance issues overwhelm their operaciones.En my practice, help advisors develop cost-effective strategies for register and meet its compliance found continuo.Hemos advisers who work with us are capable of spend minimal time to the discomfort of compliance and more time for what is really important: awareness and management of the capital.

Investment consultants, we offer a consultation to see how we can help them to "ease the pain" registration problems and normas.Para compliance schedule an appointment, e-mail to my assistant, Inga Eilenkrig ieilenkrig@furnarilevine.com.