AIMA Asks SEC To Exempt Non-US Hedge Funds From Registration Requirements

by Robin Pilgrim, LawAndTax-News.com, London

27 September 2004

The Alternative Investment Management Association (AIMA) revealed earlier this month that it had filed a submission with the US Securities and Exchange Commission (SEC) in response to the latter's plans to require hedge funds to register with it under the auspices of the 1940 Investment Advisers Act.

In a statement, the Association explained that:

"AIMA does not, as a rule, usually involve itself in lobbying activities in the USA. However, given the likely impact on AIMA’s global membership of the registration requirements proposed by the SEC, AIMA has participated in the consultation offered by the SEC. We have repeated our request that there be exemptions for advisers who are already subject to efficient regulation in their home jurisdiction and/or where they operate."

It continued: "The considerable and onerous likely impact on non-US fund managers and other interested parties, in terms of additional and significant regulatory burden and costs, has caused us to make representations to the SEC; almost all non-US hedge fund managers have US investors in their funds."

The AIMA went on to reveal that in its submission to the SEC, it had reiterated the arguments made in its earlier response to the SEC on behalf of non-US interests, resisting registration for them and pointing out the undesirability of, and difficulties inherent in, separate and possibly duplicative regulatory, examination and enforcement regimes and requirements.

It additionally submitted that local regulators, who are in constant contact with local industry practitioners and service providers, are in a better position to regulate and perform supervisory examination.

Recommended