More On Legal & Compliancefrom The Advisor's Professional Library
- Use and Misuse of Social Media Social media is an inexpensive and effective way to communicate with established and prospective clients. Nevertheless, when RIAs utilize social media to promote their advisory practices, they risk compliance problems for their firms.
- Registration Requirements for Investment Advisor Representatives (IARs) When individuals launch an advisory firm, they must avoid marketing themselves or the firm as investment advisors before they are properly approved and registered. Otherwise, they are subject to severe penalties.
Senator Chuck Grassley (R-Iowa), the ranking Republican on the Senate Finance Committee, introduced the Hedge Fund Registration Act on May 15, legislation that would require hedge funds to register with the SEC. Grassley's bill comes on the heels of a D.C. Circuit Court of Appeals ruling last year that overturned the SEC's rule requiring such registration.
The Act "would enable the Securities and Exchange Commission to do what it was already trying to do," Grassley said in introducing the bill, and "gives members of Congress the opportunity to say there should be greater transparency with hedge funds."
Grassley surveyed federal agencies about hedge fund transparency last October. Earlier this year, he joined in requesting a review by the Government Accountability Office of the scope of public and private pension plan investments in hedge funds and what returns and risks are likely for worker retirement funds. In March, Grassley filed legislation similar to the legislation introduced today as an amendment to S.4, the 9-11 homeland security legislation.