This second bill would require that all investment advisers with even a single U.S. client, including advisers of hedge funds, venture capital funds, private equity funds, and CDOs register with the SEC. This registration regime commits advisers to the gamut of restrictions and duties to which advisers of regulated pooled investment vehicles are currently subject. These include:
- Filing form ADV;
- Maintaining assets with a "qualified custodian;"
- Extensive recordkeeping requirements;
- Maintenance of a written code of ethics and compliance program;
- SEC inspections; and
- Certain restrictions on advisory contracts under the Investment Advisers Act regarding assignment, fees and carried interests.
The latest text of the Hedge Fund Adviser Registration Act of 2009 is available at: http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.711.IH:
A discussion of and links to the Senate's Hedge Fund Transparency Act of 2009 are available at: http://mutualfunddirectorsforum.blogspot.com/2009/02/legislative-spotlight-falls-on-hedge.html