Greene, Nathan; Adams, John --- "US Regulation of Investment Advisers and Private Investment Funds – A Concise Overview" [2012] ELECD 249; in Athanassiou, Phoebus (ed), "Research Handbook on Hedge Funds, Private Equity and Alternative Investments" (Edward Elgar Publishing, 2012)

Book Title: Research Handbook on Hedge Funds, Private Equity and Alternative Investments

Editor(s): Athanassiou, Phoebus

Publisher: Edward Elgar Publishing

ISBN (hard cover): 9781849802789

Section: Chapter 14

Section Title: US Regulation of Investment Advisers and Private Investment Funds – A Concise Overview

Author(s): Greene, Nathan; Adams, John

Number of pages: 24

Extract:

14. US regulation of investment advisers
and private investment funds ­ a concise
overview
Nathan Greene and John Adams*
46 47




INTRODUCTION

On 31 July 2010, President Obama enacted the single largest financial
regulatory reform in the US since those of the Depression-era, in the 1930s
and early 1940s. Considering the breadth of its scope, few, if any, financial
market participants will not be affected in some way by the Dodd-Frank
Wall Street Reform and Consumer Protection Act of 2010 (the `Dodd-
Frank Act' or the `Act'). While there is little in the way of additional
regulation placed directly on private funds themselves, the Act increases
the scope of the US Investment Advisers Act of 1940, as amended (the
`Advisers Act'), by eliminating or tightening certain of its exemptions.
These changes, which were clearly targeted at investment advisers to
private funds, impose a universal registration of all larger hedge fund and
private equity fund managers, at least those based in the United States
(US).
The Dodd-Frank Act also regulates the private investment fund indus-
try in other ways. Notably:

Derivatives, and especially over-the-counter (OTC) swap contracts,
will be significantly more regulated and major users of swaps,
including many private funds, will likewise be more regulated.
The `Volcker Rule' will limit the role that banks can play in sponsor-
ing, managing or investing in hedge funds and private equity funds.
There will be new systemic risk-related reporting by hedge funds and
private equity funds.
There is ...