The recently passed Dodd-Frank legislation now makes it a requirement for managers of hedge funds to register with the SEC. Not only that, but now these managers must adhere to the policies set forth in the Investment Advisers Act of 1940. This can put a strain on managers that previously were exempt from registration.

Private fund advisors will need to familiarize themselves with the policies of the Advisers Act implement actions such as the following:

Adherence to the Compliance Rule (Advisers Act Rule 206(4)-7) that requires the establishment of written policies and procedures and the appointment of a Chief Compliance Officer (CCO). This officers role will be to evaluate and document the overall compliance of the office. This includes identifying risks, conflicts of interest, and having a system in place to mitigate risks.
Ensuring that the Advisers Act rules on disclosure are followed. This includes the filing of Form ADV Parts I & II
Adherence to the standard books and records requirements that are applicable to all registered advisers. Also, the private funds that are managed by investment advisers are now subject to the authority of the SEC.
Rules and thresholds for what advisers can charge for performance fees.

These are only a few of the considerations that hedge fund managers must familiarize themselves with as a result of their registration with the SEC. The professionals at Cobia will partner with your firm to assist with your registration and ensure that you are in compliance with the rules and requirements. They will also be there to work with you when new rules and requirements are introduced.