It’s official. After months of anticipation, the Securities & Exchange Commission approved October 26 its proposal rule requiring hedge fund managers to register with the securities regulator. Hedge fund managers have some time to prepare for the new rule’s requirements, however, as it doesn’t go into effect until February 1, 2006.
This should give managers time to appoint a chief compliance officer, if they haven’t already done so, and prepare for SEC inspections, says Steve Zoric, head of legal and compliance at Man Investments in Chicago. Hedge fund managers will also be required to file a Form ADV. So there will be additional “costs issues,” says John Kelly, president of Man Investments, Inc., a global distributor of hedge funds and other alternative investments whose U.S. headquarters is in Chicago.