Alerts

Analysis of Recent U.S. Regulatory Proposals Regarding Investment Advisers

July 30, 2009
SRZ Client Memorandum

Legislation has been proposed to implement key aspects of the Obama administration’s plan for financial regulatory reform that was announced on June 17, 2009. The U.S. Treasury Department has released three draft bills addressing registration, investor protection and compensation. The progress of these bills will be of great significance to the investment fund industry. In particular, while the mandatory registration of advisers to pooled investment vehicles appears very likely, there are significant questions with respect to: (1) the new categories of information registered advisers will be required to maintain and report; (2) whether the funds themselves, in addition to the advisers, will be subject directly to reporting and possibly registration; and (3) whether increased oversight will lead to limitations on the investment strategies.