Hedge Fund Regulation - Investment Adviser Reporting - Comment Letter - American Bar Association - January 31, 2011
|Final Rule Issue||Effective Date||Compliance Date|
|November 16, 2011||March 31 2012||June 15, 2012*|
Rules Implementing Amendments to the Investment Advisers Act of 1940
January 31, 2011
In the comment letter, the American Bar Association recommends:
- a revised definition of "venture capital fund;"
- a revised definition of "qualifying portfolio company;"
- several issues with the foreign private adviser exemption, particularly regarding the non-exclusivity of the exemption and the $25 million threshold;
- edits regarding "spousal equivalents," fees and double-counting clients;
- that holders of debt securities should not be counted as investors;
- that total return swaps by a record owner should not automatically name the securities' counterparty the beneficial owner in all cases, and that the same approach should be taken with regard to good-faith reliance transactions; and
- that assets under management should be measured annually.
The letter also offers commentary on other topics under the private fund adviser exemption, such as U.S.-based advisers, non-U.S.-based advisers, sub-advisers and advisers to private funds in liquidation.