The Securities and Exchange Commission today reported that 1,504 advisors to hedge funds and other private funds have registered with the agency since the Dodd-Frank Wall Street Reform and Consumer Protection Act mandated such registration.
While some private fund advisors previously registered with the SEC voluntarily, mandatory registration has given the SEC its first comprehensive look at advisors to these types of funds. Including the 2,557 private fund advisors who had registered previously, a total of 4,061 advisors to one or more private funds are now registered with the SEC.
“Prior to the Dodd-Frank Act, regulators only saw a slice of the pie but didn’t know how big the pie even was,” said SEC Chairwoman Mary Schapiro, in a statement. “The law enables regulators to better protect investors by providing a more comprehensive view of who’s out there and what they’re doing.”
The SEC also issued a notice identifying 293 advisors who may no longer be eligible for registration with the SEC because they manage less than $100 million or have failed to comply with other SEC requirements. The SEC says it undertook this effort with extensive coordination and consultation with the state securities authorities.
According to the SEC, 11,002 investment advisors now are SEC-registered, with 37% advising hedge funds and other private funds. Assets under management at SEC-registered advisors has risen about $5.7 trillion, or 13%, even though the number of advisors fell about 15% as the Dodd-Frank Act required midsize advisors to move from federal to state oversight.