Alerts

SEC Investigations After Dodd-Frank: A Primer for Hedge Fund Managers and Their In-House Counsel

September 7, 2010

Although prior to passage of the Dodd–Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) many hedge fund managers did not have to register with the Securities and Exchange Commission (the “SEC”), they were still subject to liability under the anti-fraud provisions of the federal securities laws, including Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Section 206 of the Investment Advisers Act of 1940. In fact, hedge funds have recently been the focus of a number of SEC Enforcement Division actions under these statutes, and the trend is likely to continue.