Politics & Regulation

US SEC toughens up on the regulation of hedge funds


Daniel Viola
Lawyers are airing fresh warnings that the tougher compliance requirements imposed on hedge fund managers will increase operational costs that investors could end up shouldering in a big way.

On June 22, the US Securities and Exchange Commission adopted the final rules implementing amendments to the Investment Advisers Act of 1940, which will require Asian hedge fund managers to register with the SEC.

The deadline for private advisers to register was extended to 30 March 2012.

The new provisions, which are a part of the Dodd-Frank Wall Street Reform and Consumer Protection Act,