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Is the regulatory environment for hedge funds changing?

April 26, 2017changing Environment funds hedge regulatory

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Is the regulatory environment for hedge funds changing?

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The US regulatory environment for hedge funds changed significantly on October 26, 2004, when the US Securities and Exchange Commission (SEC) adopted new rules requiring managers of hedge funds to register with the SEC as investment advisers. The new ruling, SEC’s Rule 203(b)(3)-2, was released to the public on December 2, 2004. The effective date for the new rules is February 10, 2005, while the deadline for compliance is February 1, 2006. The SEC cited the escalating growth in the number and size of hedge funds, the need for reliable industry data and the changing demographics of hedge fund investors as the primary drivers for the new rules. The SEC believes registration will allow it to more closely monitor the activities of hedge funds, which in turn will allow it to examine and proactively address issues within the hedge fund industry. (In the case of Glenwood Capital Investments LLC, the firm registered with the SEC in 2000.