Regulations of Hedge Funds

Hedge funds are subject to various regulations that are designed to protect investors and promote market stability. The specific regulations that apply to hedge funds can vary depending on the country in which they are located and the regulatory body that oversees them.

In the United States, hedge funds are generally subject to regulation by the Securities and Exchange Commission (SEC) under the Investment Advisers Act of 1940. Hedge funds that have more than $150 million in assets under management are required to register with the SEC and must comply with certain reporting requirements. However, some hedge funds may be exempt from registration under certain circumstances.

In addition to SEC regulations, hedge funds may also be subject to other regulatory requirements, such as anti-money laundering and anti-terrorism financing laws. They may also be subject to rules imposed by exchanges or clearinghouses where they trade.

Internationally, hedge funds are subject to a variety of regulations depending on the country in which they are located. For example, the European Union has established the Alternative Investment Fund Managers Directive (AIFMD), which imposes certain requirements on hedge funds that operate within the EU. Overall, the goal of hedge fund regulations is to promote transparency and protect investors from fraud or other abuses. By imposing certain requirements on hedge funds, regulators aim to ensure that these funds operate in a fair and responsible manner, while also minimizing the risk of market disruptions caused by their activities.

• The Legal Structures of Hedge Funds
• Legal Structures for Non-US Hedge Funds
• Hedge Fund Regulation in Various Countries
• Supervision Approach
• Structure of Hedge Funds
• Primary Brokers
• Risk Management