In a controversial 3-2 vote on Tuesday, the SEC adopted new Rule 230(b)(3)-2 of the Advisers Act, which will require hedge fund advisers to register with the SEC. Such registration will permit the SEC to conduct examinations of advisers, require compliance controls, regulate disclosure to investors and prevent certain individuals (such as felons) from managing hedge funds.
The rule eliminates the ability of advisers to rely on an exemption from adviser registration designed for advisers providing advice only to a small number of clients. The new rule also contains provisions for advisers located outside the United States to limit the extraterritorial application. Hedge fund advisers must register with the SEC by February 1, 2006.
More on Changes to the Form 10-Q
Following up on the interview that was blogged about yesterday, the SEC release adopting the new Form 8-K rules also included revisions to Form 10-Q. In our Form 10-Q Practice Area, we have posted a redlined version of the changes to Part II of Form 10-Q.
-Posted by Julie Hoffman