TAILIEUCHUNG - A New Era in the Regulation of Private Investment Funds

An investor in a forex fund should be sophisticated enough to understand the risks associated with forex trading. Many investors would be interested in forex funds if they had the opportunity. Because advertising of the fund and any other non-personal communications are prohibited, and the media has touted the risks over the benefits, investors must be sought in more direct and creative ways. A trader may find that in addition to family and close friends, many colleagues and casual acquaintances may be potential investors. If you are interested in getting investors for your fund, your selling efforts must. | Pau Hastings stay Current A Client Alert from Paul Hastings A New Era in the Regulation of Private Investment Funds BY INVESTMENT MANAGEMENT AND PRIVATE INVESTMENT FUNDS PRACTICE Introduction The Dodd-Frank Wall Street Reform and Consumer Protection Act the Act - which became law on July 21 2010 the Enactment Date - marks a new era in the regulation of private investment funds including hedge funds and many private equity and real estate funds and their investment managers. The Act not only mandates registration for many investment managers of private investment funds it also seeks to limit the retailization of private investment funds by increasing the net worth requirements for investors in these funds. In addition the Act imposes new recordkeeping and reporting requirements on investment managers to private investment funds to ensure that the Securities and Exchange Commission SEC and the newly established Financial Stability Oversight Council the Oversight Council receive information needed to properly regulate private investment funds and manage systemic risk to the financial system. Finally the Act limits the ability of banks and their affiliates to sponsor and invest in private investment funds and requires the SEC to conduct a number of important studies over the next three years which may lead to future regulation or legislative action. The Act is of major significance to private investment funds and their investment managers. The Act greatly expands the SEC s authority to regulate investment managers to private investment funds and accordingly is only the first step in what is likely to be an ongoing and increasing regulatory presence in the private investment fund industry. Registration of Private Fund Investment Advisers Title IV of the Act - entitled Regulation of Advisers to Hedge Funds and Others 1 - eliminates the private adviser exemption from registration under the Investment Advisers Act of 1940 as amended the Advisers Act . The private adviser .

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