{"id":17604,"date":"2010-09-08T07:36:47","date_gmt":"2010-09-08T11:36:47","guid":{"rendered":"http:\/\/www.hedgeco.net\/news\/?p=17604"},"modified":"2010-09-08T07:36:47","modified_gmt":"2010-09-08T11:36:47","slug":"financial-reform-resource-what-private-fund-advisers-need-to-know-about-the-dodd-frank-act","status":"publish","type":"post","link":"https:\/\/hedgeco.net\/news\/09\/2010\/financial-reform-resource-what-private-fund-advisers-need-to-know-about-the-dodd-frank-act.html","title":{"rendered":"Financial reform resource: What private fund advisers need to know about the Dodd-Frank Act"},"content":{"rendered":"

New York (Release) – The recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act (the Act) is changing the financial service landscape. The Act addresses four major issues: transparency, risk management, accountability and structural oversight; and will create new regulators, bring new firms and markets under regulatory oversight, and provide new rulemaking and enforcement powers to regulators.<\/p>\n

Grant Thornton LLP\u2019s Financial Service practice has created a paper \u2014 Financial reform: What private fund advisers need to know about the Dodd-Frank Act<\/a> \u2014that provides a summary of the various rulemakings of the Act that apply to hedge funds, private equity funds and their advisers, their effective dates, expected impact and actions required.<\/p>\n

Registered investment advisers, especially those with large amounts of assets under management and who engage in derivatives and other high-risk activities, will face increased regulation and scrutiny \u2014 namely, registration and examination by the SEC. Funds that are classified as \u201cmajor swap participants\u201d (i.e., funds that maintain substantial positions in swaps), may be required to register with either the SEC or the Commodity Futures Trading Commission (CFTC) or possibly both regulators. The CFTC is expected to place stringent regulation on fund advisers, particularly those managing funds classified as \u201ccommodity pool operators.\u201d In addition, even some smaller funds may be required to register.<\/p>\n

\u201cAdvisers and funds should be prepared for the enhanced disclosure and reporting requirements that come with the new regulations,\u201d noted Jack Katz, national managing partner of Grant Thornton\u2019s Financial Services practice. \u201cThese potential rules \u2014 and those yet to be determined \u2014 could have a significant impact on hedge funds, private equity funds and their advisers.\u201d<\/p>\n

Some of the issues covered in the paper include:<\/p>\n