In Goldstein v. SEC, the U.S. Court of Appeals for the District of Columbia Circuit in late June vacated the Securities and Exchange Commission’s rule requiring most hedge fund advisers to register under the Investment Advisers Act. Section 203(b)(3) of the Advisers Act requires an adviser to register if it has more than 14 clients and holds itself out generally to the public as an investment adviser.
Removing the Shroud of Secrecy
The SEC could create greater transparency for hedge funds if it allowed those with registered advisers to advertise.
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