TreatiseTreatise

Hedge Fund Regulation (2nd Edition)

 by Scott J Lederman
 
 Copyright: 2012-2017
 Last Updated: June 2017

 Product Details >> 

Product Details

  • ISBN Number: 9781402419003
  • Page Count: 1026
  • Number of Volumes: 1
  •  

Covering one of the most dynamic and rapidly changing sectors of the asset management industry, Hedge Fund Regulation, is designed to provide comprehensive understanding of hedge funds, from their history and investment strategies to the legal and compliance considerations affecting their structuring, management and market activities. It provides a single source that examines all aspects of these innovative investment vehicles and addresses current regulatory concerns that impact hedge funds, their managers and investors. Updated regularly to keep current with regulatory and enforcement developments, the book is designed to guide practitioners in:

  • Structuring hedge funds, including fund complexes that combine domestic and offshore fund structures
  • Raising capital and marketing funds and their managers in accordance with Regulations D and S and other applicable securities and commodities rules
  • Complying with anti-money laundering and privacy regulations
  • Evaluating the opportunities and challenges in operating registered hedge fund products and alternative mutual funds
  • Organizing a hedge fund manager and implementing a comprehensive compliance regime
  • Understanding unique considerations regarding highly regulated investors including pensions, banks and insurance companies
  • Managing investment portfolios and the trading of securities, futures and derivatives
  • Adhering to reporting obligations with the SEC, CFTC, and other regulatory agencies
Providing crucial insight into a wide range of legal and regulatory considerations that are becoming increasingly complex, Hedge Fund Regulation is a valuable resource for attorneys and market participants.
  Table of Contents
  Introduction
Chapter 1: From Innovation to Industry
  • § 1:1 : The Birth and Growth of Hedge Funds1-1
  • § 1:2 : A Variety of Alternatives—Hedge Fund Strategies1-7
    • § 1:2.1 : Hedged Equities1-7
    • § 1:2.2 : Global Opportunistic1-8
    • § 1:2.3 : Arbitrage1-9
  • § 1:3 : Defining the Hedge Fund; The Three A’s: Alternative, Absolute, and Alpha1-16
  • § 1:4 : Reasons for Growth1-20
    • § 1:4.1 : Demand and Supply1-20
    • § 1:4.2 : Low Barriers to Entry1-22
  • § 1:5 : Industry Convergence1-23
Chapter 2: Form Over Substance: Hedge Fund Structures
  • § 2:1 : Hedge Fund Design—The Jones Blueprint2-2
  • § 2:2 : Common Characteristics2-3
    • § 2:2.1 : Centralized Management2-3
    • § 2:2.2 : Co-Investment2-3
    • § 2:2.3 : Performance-Based Compensation2-3
    • § 2:2.4 : Limited Liquidity2-3
  • § 2:3 : Domestic Hedge Funds2-4
    • § 2:3.1 : Limited Liability2-4
    • § 2:3.2 : Tax Efficiency2-6
    • § 2:3.3 : Flexible Terms2-7
      • [A] : Management Fees2-7
      • [B] : Expense Pass-Throughs2-8
      • [C] : Performance-Based Allocations2-9
        • [C][1] : High Water Marks2-10
        • [C][2] : Hurdles2-11
        • [C][3] : Regulatory Considerations2-11
      • [D] : Liquidity2-14
        • [D][1] : Portfolio Characteristics2-14
        • [D][2] : Publicly Traded Partnership Status2-14
        • [D][3] : Liquidity Management Tools2-15
          • [D][3][a] : Lock-Ups2-15
          • [D][3][b] : Gates2-16
          • [D][3][c] : Settlement Terms2-16
      • [E] : Multiple Classes/Flexible Terms2-16
        • [E][1] : Side Pockets2-17
        • [E][2] : New Issues2-18
      • [F] : Side Letters2-18
  • § 2:4 : Offshore Hedge Funds2-20
    • § 2:4.1 : Non-U.S. Investors2-20
    • § 2:4.2 : U.S. Tax-Exempt Investors2-22
    • § 2:4.3 : U.S. Taxable Investors2-23
      • [A] : Passive Foreign Investment Company2-23
      • [B] : Controlled Foreign Corporation2-25
    • § 2:4.4 : Selecting an Offshore Entity and Jurisdiction2-26
    • § 2:4.5 : Offshore Fund Terms2-28
      • [A] : Partnership Approach Within a Corporate Structure2-29
      • [B] : Equalization2-30
  • § 2:5 : Complex Fund Structures2-30
    • § 2:5.1 : Parallel Funds2-31
    • § 2:5.2 : Master-Feeder Structure2-33
    • § 2:5.3 : Mini-Master Fund2-35
  • § 2:6 : Managed Accounts2-39
Chapter 3: Rationale for Regulation
  • § 3:1 : Introduction3-1
  • § 3:2 : Theoretical Underpinnings3-1
  • § 3:3 : Market Integrity3-2
  • § 3:4 : Investor Protection3-11
  • § 3:5 : Self-Regulation3-15
Chapter 4: Private Placement
  • § 4:1 : General Considerations4-2
  • § 4:2 : Domestic Capital Raising4-3
    • § 4:2.1 : Private Placements4-3
    • § 4:2.2 : Regulation D4-4
      • [A] : Accredited Investors4-4
        • [A][1] : Natural Person’s Net Worth—Exclusion of Primary Residence4-7
        • [A][2] : Natural Person’s Net Worth—Periodic Adjustments4-8
        • [A][3] : Proposed Rule Changes4-9
      • [B] : Non-Accredited Investors4-10
        • [B][1] : Purchaser Representative4-11
        • [B][2] : Counting Non-Accredited Investors4-12
      • [C] : Disclosure Requirements4-12
      • [D] : Manner of the Offering4-17
        • [D][1] : Prohibition of General Solicitation or General Advertising4-17
        • [D][2] : Accredited Investor-Only Exception4-21
          • [D][2][a] : Verifying Accredited Investor Status4-22
            • [D][2][a][i] : Principles-Based Method of Verifying Accredited Investor Status4-23
            • [D][2][a][ii] : Non-Exclusive Methods of Verifying Accredited Investor Status of Natural Persons4-24
          • [D][2][b] : Reasonable Belief4-26
          • [D][2][c] : Interplay with Other Offering Requirements4-27
      • [E] : Limits on Resales4-29
      • [F] : Disqualified Offerings4-29
      • [G] : Post-Sale Filing4-37
  • § 4:3 : State Law Preemption4-44
  • § 4:4 : Offshore Capital Raising4-46
    • § 4:4.1 : Regulation S4-47
      • [A] : Offshore Transactions4-47
      • [B] : Directed Selling Efforts4-48
      • [C] : Issuer Safe Harbor Categories4-50
        • [C][1] : Category 14-50
        • [C][2] : Category 24-52
        • [C][3] : Category 34-52
          • [C][3][a] : Offering Restrictions4-52
          • [C][3][b] : Transfer Restrictions4-55
    • § 4:4.2 : Simultaneous Onshore and Offshore Capital Raising4-55
Chapter 5: Commodity Pools
  • § 5:1 : Commodity Pools5-1
  • § 5:2 : Disclosure Document5-2
  • § 5:3 : Reporting and Record-Keeping5-10
  • § 5:4 : Exemptions from Disclosure, Reporting, and Record-Keeping Requirements5-11
    • § 5:4.1 : Rule 4.12(b)5-12
    • § 5:4.2 : Rule 4.75-13
      • [A] : Qualified Eligible Persons5-14
        • [A][1] : QEPs Who Need Not Satisfy Portfolio Requirements5-14
        • [A][2] : QEPs Who Must Satisfy Portfolio Requirements5-16
        • [A][3] : Portfolio Requirements5-18
    • § 5:4.3 : Offshore Commodity Pools5-18
    • § 5:4.4 : Electronic Filing5-20
Chapter 6: Marketing the Manager
  • § 6:1 : Advertising6-1
    • § 6:1.1 : Investment Advisers6-2
    • § 6:1.2 : CPOs and CTAs6-5
  • § 6:2 : Track Record6-6
    • § 6:2.1 : Investment Advisers6-6
      • [A] : Record Keeping6-6
      • [B] : Actual and Model Performance6-7
      • [C] : Unsolicited Requests6-10
      • [D] : Prior Experience6-10
    • § 6:2.2 : CPOs and CTAs6-11
      • [A] : Past Performance6-11
      • [B] : Proprietary Trading Results6-14
      • [C] : Hypothetical Results6-15
      • [D] : Extracted Performance6-17
    • § 6:2.3 : Global Investment Performance Standards6-18
      • [A] : Fundamentals of Compliance6-20
      • [B] : Input Data6-21
      • [C] : Calculation Methodology6-22
      • [D] : Composite Construction6-22
      • [E] : Disclosure6-24
      • [F] : Presentation and Reporting6-25
  • § 6:3 : Use of the Internet6-27
    • § 6:3.1 : Internet6-27
    • § 6:3.2 : Social Media6-34
Chapter 7: Marketers
  • § 7:1 : Broker-Dealer Status7-1
  • § 7:2 : State Broker-Dealer Regulations7-7
  • § 7:3 : FINRA Considerations7-8
    • § 7:3.1 : Disclosure Standards7-8
    • § 7:3.2 : Obligation to Conduct Reasonable Investigations7-10
    • § 7:3.3 : Filing of Offering Documents7-11
  • § 7:4 : Capital Introduction Services7-13
  • § 7:5 : Solicitors7-13
    • § 7:5.1 : Cash Solicitation Rule7-13
    • § 7:5.2 : Pay to Play7-17
    • § 7:5.3 : Lobbying7-25
    • § 7:5.4 : Foreign Corrupt Practices Act7-26
Chapter 8: Anti-Money Laundering Regulations
  • § 8:1 : AML Program Overview8-1
  • § 8:2 : Investment Advisers and the BSA8-3
    • § 8:2.1 : Investment Adviser Status8-4
    • § 8:2.2 : FinCEN and SEC Examination Authority8-4
    • § 8:2.3 : Investment Advisers As Financial Institutions8-4
  • § 8:3 : AML Program Elements8-5
    • § 8:3.1 : Establish and Implement Policies, Procedures, and Internal Controls8-6
    • § 8:3.2 : Independent Testing8-7
    • § 8:3.3 : AML Compliance Officer8-7
    • § 8:3.4 : Training8-8
    • § 8:3.5 : Other AML Considerations8-8
  • § 8:4 : Investor Identification Procedures8-10
    • § 8:4.1 : Nature of the Relationship Between the Fund and Its Investors8-11
    • § 8:4.2 : Investor’s Location8-11
    • § 8:4.3 : Nature of the Investor8-12
    • § 8:4.4 : Nature of the Investment Activities8-13
  • § 8:5 : BSA Requirements8-15
    • § 8:5.1 : Suspicious Activity Reports8-15
    • § 8:5.2 : CTR Filings8-19
    • § 8:5.3 : Recordkeeping and Travel Rules8-19
    • § 8:5.4 : Information Sharing8-20
Chapter 9: Privacy Regulations
  • § 9:1 : Gramm-Leach-Bliley Act9-1
  • § 9:2 : ISP Regulations9-5
    • § 9:2.1 : FTC Regulations9-5
    • § 9:2.2 : SEC Regulations9-7
    • § 9:2.3 : CFTC Regulations9-11
  • § 9:3 : Data Disposal Rules9-13
  • § 9:4 : Identity Theft Red Flags Rules9-14
    • § 9:4.1 : Financial Institutions9-14
    • § 9:4.2 : Creditors9-16
    • § 9:4.3 : Covered Account9-16
    • § 9:4.4 : Elements of Red Flags Program9-17
  • § 9:5 : State Privacy Regulation9-19
  • § 9:6 : Cybersecurity9-20
    • § 9:6.1 : SEC Guidance9-20
    • § 9:6.2 : NFA Guidance9-25
Chapter 10: Regulation of Private Investment Companies
  • § 10:1 : Avoiding Investment Company Status10-1
  • § 10:2 : Section 3(c)(1) Funds10-3
    • § 10:2.1 : The 100-Beneficial-Owner Requirement10-4
    • § 10:2.2 : Knowledgeable Employees10-5
    • § 10:2.3 : Involuntary Transferees10-8
    • § 10:2.4 : Look-Through Rule10-9
    • § 10:2.5 : Private Placement Requirement10-10
  • § 10:3 : Section 3(c)(7) Funds10-11
    • § 10:3.1 : Qualified Purchasers10-12
    • § 10:3.2 : Knowledgeable Employees10-14
    • § 10:3.3 : Involuntary Transferees10-14
    • § 10:3.4 : Investments10-14
    • § 10:3.5 : The Private Placement Requirement10-17
    • § 10:3.6 : Numerical Limits on Section 3(c)(7) Funds10-17
      • [A] : Securities Exchange Act Reporting10-17
      • [B] : Publicly Traded Partnerships10-19
      • [C] : Plan Asset Regulations10-20
  • § 10:4 : The Interplay of Sections 3(c)(1) and 3(c)(7)10-20
    • § 10:4.1 : Conversion10-20
    • § 10:4.2 : Integration10-21
  • § 10:5 : Combined Domestic and Offshore Fund Structures10-22
  • § 10:6 : Commodity Pools10-24
Chapter 11: Regulation of Registered Investment Companies
  • § 11:1 : Reasons for Registering11-1
  • § 11:2 : Types of Registered Funds11-4
  • § 11:3 : Raising Capital11-6
  • § 11:4 : Tax Structures11-6
  • § 11:5 : Fund Governance and Administration11-8
  • § 11:6 : Fund Disclosures11-10
  • § 11:7 : Investor Liquidity11-12
    • § 11:7.1 : Closed-End Funds11-12
    • § 11:7.2 : Open-End Funds11-13
  • § 11:8 : Portfolio Management11-14
    • § 11:8.1 : Investment Objectives11-14
    • § 11:8.2 : Affiliated Transactions11-14
    • § 11:8.3 : Leverage11-15
  • § 11:9 : Valuation11-16
Chapter 12: Investment Adviser Registration
  • § 12:1 : Introduction12-2
  • § 12:2 : Bifurcated Regulation12-3
    • § 12:2.1 : Eligibility for Federal Registration12-5
      • [A] : Assets Under Management12-5
      • [B] : Mid-Sized Advisers12-7
      • [C] : Switching Between Federal and State Registration12-8
    • § 12:2.2 : Eligibility for State Registration12-9
    • § 12:2.3 : Exemption from Federal Registration12-10
      • [A] : Private Adviser Exemption12-10
      • [B] : Private Fund Exemptions12-11
        • [B][1] : The Private Fund12-11
        • [B][2] : Private Fund Adviser Exemption12-12
          • [B][2][a] : U.S. Advisers12-12
          • [B][2][b] : Non-U.S. Advisers12-13
          • [B][2][c] : Private Fund Assets12-14
        • [B][3] : Venture Capital Funds12-15
          • [B][3][a] : Qualifying Investments12-15
          • [B][3][b] : Limitation on Leverage12-17
          • [B][3][c] : Redemption Rights12-18
          • [B][3][d] : Venture Capital Strategy Representation12-18
          • [B][3][e] : Private Fund Status12-18
          • [B][3][f] : Grandfathered Funds12-19
        • [B][4] : Exempt Reporting Advisers12-19
      • [C] : Other Exemptions12-23
        • [C][1] : Intra-State Exemption12-23
        • [C][2] : CTA Exemption12-23
        • [C][3] : Family Office12-23
          • [C][3][a] : Family Clients12-25
          • [C][3][b] : Family Member12-25
          • [C][3][c] : Key Employees12-26
          • [C][3][d] : Ownership and Control12-27
          • [C][3][e] : Grandfather Provision12-27
    • § 12:2.4 : Exemption from State Registration12-28
    • § 12:2.5 : Jurisdictional Reach of Advisory Regulations12-29
      • [A] : State Oversight12-29
      • [B] : Federal Anti-Fraud Rule12-29
  • § 12:3 : Offshore Managers12-32
    • § 12:3.1 : Foreign Private Advisers12-33
      • [A] : Clients12-34
      • [B] : Private Fund Investors12-35
      • [C] : In the United States12-36
      • [D] : Assets Under Management12-37
      • [E] : Holding Out12-37
      • [F] : Adviser Lite12-38
    • § 12:3.2 : Affiliation with Domestic Managers12-39
  • § 12:4 : Registration Process12-43
Chapter 13: Compliance
  • § 13:1 : Compliance Obligations13-2
    • § 13:1.1 : Fiduciary Duty13-2
    • § 13:1.2 : Substantive Prohibitions and Requirements13-7
  • § 13:2 : Compliance Policies13-8
  • § 13:3 : Chief Compliance Officer13-10
  • § 13:4 : Code of Ethics13-15
  • § 13:5 : Supervision13-20
  • § 13:6 : Whistleblowers13-21
    • § 13:6.1 : Definition of Whistleblower13-22
    • § 13:6.2 : Payment of Award13-24
      • [A] : Voluntary Provision of Information13-25
      • [B] : Original Information13-25
      • [C] : Information That Leads to a Successful Enforcement13-28
      • [D] : SEC Action13-28
    • § 13:6.3 : Interplay Between Whistleblower Regime and Compliance Policies and Procedures13-28
  • § 13:7 : Contractual Requirements13-30
    • § 13:7.1 : Compensation13-30
    • § 13:7.2 : Assignments of Advisory Contracts13-31
    • § 13:7.3 : Notification of Partnership Changes13-31
    • § 13:7.4 : Hedge Clauses13-31
    • § 13:7.5 : Termination Penalties13-32
  • § 13:8 : Proxy Voting13-32
    • § 13:8.1 : Proxy Voting Rule13-32
    • § 13:8.2 : Proxy Advisory Firms13-36
  • § 13:9 : Business Continuity13-37
    • § 13:9.1 : Business Continuity Planning13-37
    • § 13:9.2 : Transition Planning13-41
    • § 13:9.3 : SEC Business Continuity Regulations13-42
      • [A] : Business Continuity Plan Contents13-42
      • [B] : Annual Review13-45
      • [C] : Recordkeeping13-46
    • § 13:9.4 : Other Regulatory Considerations13-46
      • [A] : State Advisers13-46
      • [B] : NFA Members13-47
  • § 13:10 : SEC Examinations13-48
    • § 13:10.1 : National Exam Program13-48
    • § 13:10.2 : Exam Process13-50
    • § 13:10.3 : Areas of Focus13-51
    • § 13:10.4 : Presence Exams13-52
    • § 13:10.5 : Handling an SEC Examination13-54
  • § 13:11 : State Examinations13-56
Chapter 14: Books and Records
  • § 14:1 : General Requirements14-1
  • § 14:2 : Systemic Risk Information14-6
    • § 14:2.1 : Records and Reports14-6
    • § 14:2.2 : Form PF14-7
      • [A] : Form PF Filers14-8
        • [A][1] : Hedge Funds14-8
        • [A][2] : Large Private Fund Advisers14-10
        • [A][3] : Exempt Reporting Advisers14-10
        • [A][4] : Aggregation of Assets Under Management14-10
      • [B] : Frequency of Reporting14-11
      • [C] : Information Required on Form PF14-12
        • [C][1] : Section 114-12
        • [C][2] : Section 214-13
      • [D] : Forms CPO-PQR and CTA-PR14-14
        • [D][1] : Form CPO-PQR14-14
          • [D][1][a] : Form CPO-PQR Schedule A14-16
          • [D][1][b] : Form CPO-PQR Schedule B14-16
          • [D][1][c] : Form CPO-PQR Schedule C14-17
        • [D][2] : Form CTA-PR14-18
    • § 14:2.3 : Confidentiality of Records and Reports14-18
Chapter 15: Custody
  • § 15:1 : Custody Rule15-1
  • § 15:2 : Custody Defined15-2
  • § 15:3 : Qualified Custodian15-3
  • § 15:4 : Notices and Account Statements15-3
  • § 15:5 : Surprise Examinations and Annual Audit Exception15-5
  • § 15:6 : Internal Control Report15-7
  • § 15:7 : Privately Offered Securities15-9
  • § 15:8 : Special Purpose Vehicles15-10
  • § 15:9 : Custody-Related Compliance Policies and Procedures15-12
  • § 15:10 : Section 22315-13
Chapter 16: Performance Fees
  • § 16:1 : Securities Law Considerations16-1
  • § 16:2 : Tax Considerations16-4
    • § 16:2.1 : Section 409A16-5
    • § 16:2.2 : Section 457A16-8
Chapter 17: State Advisory Regulation
  • § 17:1 : Introduction17-1
  • § 17:2 : Registration17-2
    • § 17:2.1 : The Adviser17-2
    • § 17:2.2 : De Minimis Exception17-2
    • § 17:2.3 : Adviser Representatives17-2
    • § 17:2.4 : Regulation of the Adviser17-3
    • § 17:2.5 : Relief from Multiple State Regulation17-3
    • § 17:2.6 : SEC Oversight17-3
Chapter 18: Commodity Pool Operators and Commodity Trading Advisers
  • § 18:1 : Commodity Pool Operator18-2
  • § 18:2 : Commodity Trading Adviser18-3
  • § 18:3 : Registration18-3
  • § 18:4 : Exclusions and Exemptions from Registration18-6
    • § 18:4.1 : Section 4.5 Exclusion from the Definition of Commodity Pool Operator18-6
      • [A] : Section 4.518-6
      • [B] : Harmonization with Investment Company Act18-10
        • [B][1] : Disclosure Requirements18-10
          • [B][1][a] : Delivery of Disclosure Document18-10
          • [B][1][b] : Updating of Disclosure Document18-10
          • [B][1][c] : Filing and Review of Disclosure Document18-11
          • [B][1][d] : RIC Structures18-11
        • [B][2] : Disclosures18-12
          • [B][2][a] : Risk Statements and Legends18-12
          • [B][2][b] : Risk Disclosure18-12
          • [B][2][c] : Break-Even Analysis18-13
          • [B][2][d] : Past Performance Disclosure18-13
          • [B][2][e] : Fee Disclosure18-13
        • [B][3] : Financial Reporting18-14
    • § 18:4.2 : Exemptions from Registration As a Commodity Pool Operator18-14
      • [A] : Section 4.13(a)(1) No Compensation Exemption18-14
      • [B] : Section 4.13(a)(2) Small Operator Exemption18-14
      • [C] : Section 4.13(a)(3) Limited Futures Trading Exemption18-15
      • [D] : Family Office18-18
    • § 18:4.3 : Exemptions from Registration As a Commodity Trading Adviser18-19
      • [A] : Section 4.14(a)(4) and (a)(5) CPO Exemptions18-19
      • [B] : Section 4.14(a)(8) Registered Investment Adviser Exemption18-19
      • [C] : Section 4.14(a)(10) Private CTA Exemption18-20
    • § 18:4.4 : Offshore Commodity Pools18-21
    • § 18:4.5 : Exemption Notice Filings18-23
  • § 18:5 : Compliance Obligations18-24
    • § 18:5.1 : Supervision and Self-Audit18-24
    • § 18:5.2 : Recordkeeping18-27
    • § 18:5.3 : Reporting18-28
      • [A] : Reports to Pool Participants18-28
      • [B] : Quarterly Reporting to NFA18-30
    • § 18:5.4 : Doing Business with Non-Members18-30
    • § 18:5.5 : Ethics Training18-31
    • § 18:5.6 : Business Continuity18-32
    • § 18:5.7 : Sharing of Profits18-32
    • § 18:5.8 : Prohibition on Loans18-33
  • § 18:6 : NFA Audits18-35
Chapter 19: Pensions
  • § 19:1 : Introduction19-1
  • § 19:2 : Pensions19-2
    • § 19:2.1 : Fiduciary Standards19-3
      • [A] : Duty of Loyalty19-4
      • [B] : Prudent Man Rule19-5
      • [C] : Diversification19-6
      • [D] : Adherence to Plan Documents19-6
    • § 19:2.2 : Party in Interest/Prohibited Transactions19-6
    • § 19:2.3 : Liabilities and Indemnification19-8
    • § 19:2.4 : Operational Considerations19-9
      • [A] : Custody19-9
      • [B] : Bonding19-11
      • [C] : Reporting19-11
        • [C][1] : Section 408(b)(2) Disclosures19-11
        • [C][2] : Form 5500 Annual Reports19-16
    • § 19:2.5 : The Plan Asset Regulations19-19
    • § 19:2.6 : Operating As an ERISA Fiduciary19-23
      • [A] : Investment Advisers Act Registration19-23
        • [A][1] : Investment Manager Status19-23
        • [A][2] : QPAM Exemption19-24
        • [A][3] : Service Provider Exemption19-26
        • [A][4] : Performance Compensation19-27
  • § 19:3 : Government Plans19-29
Chapter 20: Banks
  • § 20:1 : Bank Holding Company Act20-2
  • § 20:2 : Volcker Rule20-4
    • § 20:2.1 : Hedge Fund Ownership and Sponsorship20-5
      • [A] : Banking Entity20-5
      • [B] : Covered Fund20-6
        • [B][1] : Section 3(c)(1) and Section 3(c)(7) Funds20-7
        • [B][2] : Commodity Pool20-8
        • [B][3] : Foreign Covered Fund20-8
        • [B][4] : Exclusions from Covered Fund Status20-9
      • [C] : Acting as Principal20-11
      • [D] : Ownership Interest20-12
      • [E] : Sponsor20-13
    • § 20:2.2 : Organizing and Offering a Covered Fund20-14
    • § 20:2.3 : Ownership Limitations20-17
      • [A] : Per-Fund Limitation20-19
      • [B] : Aggregate Funds Limitation20-20
      • [C] : Attribution of Ownership Interests20-21
    • § 20:2.4 : Affiliated Transactions20-23
    • § 20:2.5 : Foreign Banks20-25
      • [A] : Investing in Non-Covered Funds20-25
      • [B] : Foreign Fund Exemption20-25
    • § 20:2.6 : Limitations on Sponsorship and Ownership20-31
    • § 20:2.7 : Volcker Rule Compliance20-32
  • § 20:3 : U.S. Bank Capital Rules20-36
    • § 20:3.1 : Volcker Rule Capital Provisions20-37
    • § 20:3.2 : Basel Capital Rules20-38
    • § 20:3.3 : U.S. Basel Rules20-40
      • [A] : Capital Ratio Implications20-41
        • [A][1] : Financial Institution Exposure20-41
          • [A][1][a] : Financial Institution20-43
          • [A][1][b] : Deductions Related to Investments in the Bank’s Own Securities20-44
          • [A][1][c] : Investments in Unconsolidated Financial Institution20-45
            • [A][1][c][i] : Non-Significant Investments—10% Threshold20-45
            • [A][1][c][ii] : Significant Investments—10% Threshold20-45
            • [A][1][c][iii] : Significant Investments—15% Threshold20-46
          • [A][1][d] : Corresponding Deduction Approach20-46
          • [A][1][e] : Indirect Exposures20-47
        • [A][2] : Risk Weighting of Asset20-47
          • [A][2][a] : Traditional Securitization20-47
          • [A][2][b] : Leveraged Hedge Fund/600% Risk Weight20-48
          • [A][2][c] : Investment Funds/Look-Through Approaches20-48
            • [A][2][c][i] : Full Look-Through Approach20-49
            • [A][2][c][ii] : Simplified Modified Look-Through Approach20-50
            • [A][2][c][iii] : Alternative Modified Look-Through Approach20-50
          • [A][2][d] : Coordination with Numerator Considerations20-51
          • [A][2][e] : Basel Final Policy Framework20-51
            • [A][2][e][i] : Look-Through Approach20-51
            • [A][2][e][ii] : Mandate-Based Approach20-52
            • [A][2][e][iii] : Fall Back Approach20-52
            • [A][2][e][iv] : Leverage Adjustment20-53
        • [A][3] : Other Implications of Basel III20-53
Chapter 21: Insurance Companies
  • § 21:1 : Investment Authority21-1
    • § 21:1.1 : General Account and Separate Accounts21-1
    • § 21:1.2 : Investments of the General Account21-2
  • § 21:2 : Insurance Holding Company Systems Act21-3
  • § 21:3 : Financial Statement Reporting and Risk-Based Capital21-4
  • § 21:4 : Volcker Rule21-7
Chapter 22: Registered Investment Companies
  • § 22:1 : Affiliated Transactions22-1
  • § 22:2 : Public Disclosure22-2
Chapter 23: Broker-Dealer Status and Relationships
  • § 23:1 : Introduction23-1
  • § 23:2 : Broker-Dealer Status23-2
  • § 23:3 : New Issues23-4
    • § 23:3.1 : Rule 513023-4
      • [A] : Definition of “New Issue”23-4
      • [B] : Restricted Persons23-5
        • [B][1] : Portfolio Manager23-5
        • [B][2] : De Minimis Exemption23-6
      • [C] : Carve-Outs23-7
      • [D] : Compliance23-8
    • § 23:3.2 : Rule 513123-9
  • § 23:4 : Best Execution23-12
  • § 23:5 : Soft Dollars23-14
    • § 23:5.1 : Goods or Services Provided by the Broker23-16
    • § 23:5.2 : Investment Discretion23-18
    • § 23:5.3 : Good-Faith Determination23-18
    • § 23:5.4 : Brokerage and Research Services23-19
      • [A] : Research23-19
      • [B] : Brokerage23-21
      • [C] : Mixed-Use Items23-22
      • [D] : Lawful and Appropriate Assistance23-23
    • § 23:5.5 : Operating Outside the Safe Harbor23-23
Chapter 24: Disclosures of Market Participation
  • § 24:1 : Introduction24-1
  • § 24:2 : Sections 13(d) and 13(g)24-2
    • § 24:2.1 : Section 13(d)24-2
    • § 24:2.2 : Section 13(g)24-4
  • § 24:3 : Decoupling of Shareholder Economic and Voting Rights and Section 13(o)24-7
  • § 24:4 : Section 13(f)24-11
  • § 24:5 : Section 13(h)24-12
  • § 24:6 : Section 1624-19
  • § 24:7 : Hart-Scott-Rodino Act24-22
  • § 24:8 : State Anti-Takeover Statutes24-30
  • § 24:9 : CFTC Large Trader Reporting24-31
  • § 24:10 : Cross-Border Investment Reporting24-32
    • § 24:10.1 : Direct Investments and Portfolio Investments24-33
    • § 24:10.2 : BEA Reporters24-34
    • § 24:10.3 : TIC Reporters24-35
    • § 24:10.4 : BEA Reports24-35
      • [A] : Surveys of U.S. Direct Investments Abroad24-35
      • [B] : Surveys of Foreign Direct Investments in the United States24-38
    • § 24:10.5 : TIC Reports24-40
Chapter 25: Systemic Risk Regulation
  • § 25:1 : Introduction25-1
  • § 25:2 : Financial Stability Oversight Council25-1
  • § 25:3 : Nonbank Financial Company25-2
    • § 25:3.1 : Supervision and Regulation of Certain Nonbank Financial Companies25-6
    • § 25:3.2 : Prudential Regulation25-12
    • § 25:3.3 : Reporting25-16
    • § 25:3.4 : Orderly Liquidation25-19
Chapter 26: Derivatives Markets Participants
  • § 26:1 : Introduction26-3
  • § 26:2 : Regulatory Jurisdiction over Swaps26-4
    • § 26:2.1 : Definition of Swap26-5
    • § 26:2.2 : Definition of Security-Based Swap26-5
    • § 26:2.3 : Definition of Mixed Swap26-6
    • § 26:2.4 : Security-Based Swap Agreement26-7
    • § 26:2.5 : Swap and Security-Based Swap Exclusions26-7
  • § 26:3 : Clearing and Exchange Trading26-9
  • § 26:4 : Swap Dealers and Major Swap Participants26-15
    • § 26:4.1 : Definition of “Swap Dealer” and “Security-Based Swap Dealer”26-15
    • § 26:4.2 : Swap Dealers26-17
      • [A] : Holding Out and Commonly Known As a Swap Dealer26-18
      • [B] : Market Making26-19
      • [C] : Ordinary Course of Business26-19
      • [D] : Hedging Exclusion26-20
    • § 26:4.3 : Security-Based Swap Dealer26-21
    • § 26:4.4 : De Minimis Exception26-22
    • § 26:4.5 : Definition of “Major Swap Participant” and “Major Security-Based Swap Participant”26-24
    • § 26:4.6 : Registration26-31
    • § 26:4.7 : Regulatory Capital and Margin26-36
      • [A] : Swap Dealer and Major Swap Participant26-36
        • [A][1] : Capital Requirements26-36
        • [A][2] : Margin Requirements26-40
          • [A][2][a] : Initial Margin26-43
          • [A][2][b] : Variation Margin26-47
        • [A][3] : Segregation26-49
      • [B] : Security-Based Swap Dealer and Major Security-Based Swap Participant26-50
        • [B][1] : Security-Based Swap Dealer Capital Requirements26-50
          • [B][1][a] : Minimum Net Capital26-51
          • [B][1][b] : Standardized Haircuts for Security-Based Swaps26-52
            • [B][1][b][i] : CDS Security-Based Swaps26-53
            • [B][1][b][ii] : Non-CDS Security-Based Swaps26-54
            • [B][1][b][iii] : Commodity Positions and Swaps26-54
            • [B][1][b][iv] : Credit Risk Charges26-54
            • [B][1][b][v] : Risk Management26-55
            • [B][1][b][vi] : Liquidity Stress Test26-56
        • [B][2] : Major Security-Based Swap Participant Capital Requirements26-57
        • [B][3] : Margin Requirements26-57
          • [B][3][a] : Security-Based Swap Dealer26-57
          • [B][3][b] : Major Security-Based Swap Participant26-59
        • [B][4] : Segregation26-60
    • § 26:4.8 : Reporting and Recordkeeping26-61
      • [A] : Swap Dealer and Major Swap Participant Recordkeeping26-61
      • [B] : Swap Data Recordkeeping and Reporting Requirements26-63
      • [C] : Security-Based Swap Dealers and Major Security-Based Swap Participants26-70
        • [C][1] : Recordkeeping26-70
        • [C][2] : Reporting26-72
        • [C][3] : Notification26-75
        • [C][4] : Securities Count26-76
      • [D] : Security-Based Swap Data Recordkeeping and Reporting Requirements26-77
    • § 26:4.9 : Compliance Duties26-83
      • [A] : Swap Dealer and Major Swap Participant26-84
        • [A][1] : Risk Management26-84
        • [A][2] : Monitoring of Position Limits26-86
        • [A][3] : Diligent Supervision26-87
        • [A][4] : Business Continuity and Disaster Recovery26-87
        • [A][5] : Disclosure and Ability to Obtain Information26-88
        • [A][6] : Antitrust Considerations26-88
      • [B] : Diligent Supervision of Security-Based Swap Dealers and Major Security-Based Swap Participants26-88
      • [C] : Chief Compliance Officer26-91
        • [C][1] : Swap Dealers and Major Swap Participants26-91
        • [C][2] : Security-Based Swap Dealers and Major Security-Based Swap Participants26-95
    • § 26:4.10 : Business Conduct Standards26-97
      • [A] : Anti-Fraud and Anti-Manipulation Regulations26-98
        • [A][1] : Swaps26-98
        • [A][2] : Security-Based Swaps26-102
      • [B] : Verification of Counterparty Eligibility26-104
        • [B][1] : Swap Dealers and Major Swap Participants26-104
        • [B][2] : Security-Based Swap Dealers and Major Security-Based Swap Participants26-105
          • [B][2][a] : Verification26-105
          • [B][2][b] : Know Your Counterparty26-106
      • [C] : Disclosure of Material Risks, Characteristics, Material Incentives, and Conflicts of Interest Regarding a Swap or Security-Based Swap26-106
        • [C][1] : Swaps26-106
        • [C][2] : Security-Based Swaps26-108
      • [D] : Daily Mark26-109
        • [D][1] : Swaps26-109
        • [D][2] : Security-Based Swaps26-110
      • [E] : Clearing26-111
        • [E][1] : Swaps26-111
        • [E][2] : Security-Based Swaps26-112
      • [F] : Communications—Fair Dealing26-112
        • [F][1] : Swaps26-112
        • [F][2] : Security-Based Swaps26-113
      • [G] : Recommendations to Counterparties—Institutional Suitability26-114
        • [G][1] : Swaps26-114
        • [G][2] : Security-Based Swaps26-116
      • [H] : Swap Documentation Standards26-116
      • [I] : Portfolio Confirmation, Reconciliation, and Compression26-118
        • [I][1] : Portfolio Confirmation26-119
          • [I][1][a] : Swaps26-119
          • [I][1][b] : Security-Based Swaps26-120
        • [I][2] : Portfolio Reconciliation26-121
        • [I][3] : Portfolio Compression26-123
      • [J] : Conflicts of Interest26-123
    • § 26:4.11 : Special Obligations of Swap Dealers and Security-Based Swap Dealers Regarding Special Entities26-125
      • [A] : Swap Dealers Acting As Advisors to Special Entities26-126
      • [B] : Security-Based Swap Dealers Acting As Advisors to Special Entities26-129
    • § 26:4.12 : Acting As Counterparties to Special Entities26-131
      • [A] : Swap Dealers and Major Swap Participants Acting As Counterparties to Special Entities26-132
      • [B] : Security-Based Swap Dealers and Major Security-Based Swap Participants Acting As Counterparties to Special Entities26-134
Chapter 27: Trading
  • § 27:1 : Introduction27-2
  • § 27:2 : Trading Transaction Exemption27-2
    • § 27:2.1 : Rule 14427-3
    • § 27:2.2 : Rule 144A27-10
  • § 27:3 : Short Sales27-11
    • § 27:3.1 : Brief History of the Short Sale Price Test27-12
    • § 27:3.2 : Short Sale Price Test27-16
      • [A] : Price Test Terminology27-16
      • [B] : Price Test27-17
      • [C] : Covered Securities27-18
      • [D] : Pricing Increment27-19
      • [E] : Circuit Breaker27-19
      • [F] : Trading Center Policies and Procedures27-20
      • [G] : Short Exempt Transactions27-21
      • [H] : Exemptive Procedures27-23
      • [I] : Overseas Transactions27-23
    • § 27:3.3 : Determining Short Status27-24
    • § 27:3.4 : Naked Short Selling27-25
      • [A] : Locate Requirement27-26
      • [B] : Anti-Fraud Rule 10b-2127-27
      • [C] : Close Out Requirement27-29
    • § 27:3.5 : Section 16(c)27-31
    • § 27:3.6 : Rule 10527-31
  • § 27:4 : Insider Trading27-37
    • § 27:4.1 : Insider Trading Under the Securities Laws27-37
      • [A] : Elements of Insider Trading27-37
      • [B] : Tippers and Tippees27-39
      • [C] : Misappropriation Theory27-42
    • § 27:4.2 : Regulation FD27-44
    • § 27:4.3 : Section 204A—Insider Trading Policies27-45
    • § 27:4.4 : Insider Trading Under the CEA27-46
  • § 27:5 : Manipulation27-47
    • § 27:5.1 : Securities Law Manipulation27-47
    • § 27:5.2 : Manipulation Under the CEA27-50
  • § 27:6 : Trade Errors27-54
  • § 27:1 : Introduction27-2
  • § 27:2 : Trading Transaction Exemption27-2
    • § 27:2.1 : Rule 14427-3
    • § 27:2.2 : Rule 144A27-10
  • § 27:3 : Short Sales27-11
    • § 27:3.1 : Brief History of the Short Sale Price Test27-12
    • § 27:3.2 : Short Sale Price Test27-16
      • [A] : Price Test Terminology27-16
      • [B] : Price Test27-17
      • [C] : Covered Securities27-18
      • [D] : Pricing Increment27-19
      • [E] : Circuit Breaker27-19
      • [F] : Trading Center Policies and Procedures27-20
      • [G] : Short Exempt Transactions27-21
      • [H] : Exemptive Procedures27-23
      • [I] : Overseas Transactions27-23
    • § 27:3.3 : Determining Short Status27-24
    • § 27:3.4 : Naked Short Selling27-25
      • [A] : Locate Requirement27-26
      • [B] : Anti-Fraud Rule 10b-2127-27
      • [C] : Close Out Requirement27-29
    • § 27:3.5 : Section 16(c)27-31
    • § 27:3.6 : Rule 10527-31
  • § 27:4 : Insider Trading27-37
    • § 27:4.1 : Insider Trading Under the Securities Laws27-37
      • [A] : Elements of Insider Trading27-37
      • [B] : Tippers and Tippees27-39
      • [C] : Misappropriation Theory27-41
    • § 27:4.2 : Regulation FD27-44
    • § 27:4.3 : Section 204A—Insider Trading Policies27-44
    • § 27:4.4 : Insider Trading Under the CEA27-46
  • § 27:5 : Manipulation27-47
    • § 27:5.1 : Securities Law Manipulation27-47
    • § 27:5.2 : Manipulation Under the CEA27-50
  • § 27:6 : Trade Errors27-54
Chapter 28: Portfolio Management
  • § 28:1 : Introduction28-1
  • § 28:2 : Principal Trades and Agency Cross Transactions28-1
    • § 28:2.1 : Section 206(3)28-2
    • § 28:2.2 : 25% Ownership Interest Principal Transaction Exclusion28-3
    • § 28:2.3 : No Compensation Agency Transaction Exclusion28-4
    • § 28:2.4 : Rule 206(3)-2 Agency Transaction Safe Harbor28-4
    • § 28:2.5 : Cross Trading Under ERISA28-5
  • § 28:3 : Trade Aggregation and Allocation28-8
  • § 28:4 : Portfolio Valuation28-10
Chapter 29: Structured Products
  • § 29:1 : Introduction29-1
  • § 29:2 : Pass-Through Structures29-2
  • § 29:3 : Principal Protected Notes29-3
    • § 29:3.1 : Constant Proportion Principal Insurance29-3
    • § 29:3.2 : Embedded Option Structure29-6
  • § 29:4 : Collateralized Fund Obligations29-6
  • § 29:5 : Portable Alpha29-11
  • § 29:6 : Investable Hedge Fund Indices29-15
Appendix A: Statutes and Regulations; and Appendices A1-A13
  • Appendix A1 : Securities Act of 1933—Selected ProvisionsApp. A1-1
  • Appendix A2 : Rules Under the Securities Act of 1933—Selected RulesApp. A2-1
  • Appendix A3 : Securities Exchange Act of 1934—Selected ProvisionsApp. A3-1
  • Appendix A4 : Rules Under the Securities Exchange Act of 1934—Selected ProvisionsApp. A4-1
  • Appendix A5 : Investment Advisers Act of 1940—Selected ProvisionsApp. A5-1
  • Appendix A6 : Rules Under the Investment Advisers Act of 1940—Selected RulesApp. A6-1
  • Appendix A7 : Investment Company Act of 1940—Selected ProvisionsApp. A7-1
  • Appendix A8 : Rules Under the Investment Company Act of 1940—Selected RulesApp. A8-1
  • Appendix A9 : Employee Retirement Income Security Act of 1974—Selected Provisions, Regulations and Class ExemptionsApp. A9-1
  • Appendix A10 : Hart-Scott-Rodino Antitrust Improvements Act of 1976—Selected ProvisionsApp. A10-1
  • Appendix A11 : Commodity Exchange Act—Selected RulesApp. A11-1
  • Appendix A12 : The Volcker RuleApp. A12-1
  • Appendix A13 : Volcker Rule RegulationsApp. A13-1
  Index

  Please click here to view the latest update information for this title: Last Update Information  
 

Share
Email
UPKEEP SERVICE
Your purchase will also sign you up for “Upkeep Service,” whereby you will receive future automatic shipments of updates, new editions and supplements to this edition, as they become available, for a 30-day preview. Updates, new editions and supplements published within 90 days of your purchase will be issued free of charge; all other updates will be subject to an additional charge if kept beyond the preview period, invoiced at the time of delivery. This service will continue until canceled by you at any time. See here.
”For securities attorneys, Hedge Fund Regulation may become the next favorite in deciphering the tangled web of hedge funds.”
Legal Information Alert


  • FOLLOW PLI:
  • twitter
  • LinkedIn
  • GooglePlus
  • RSS

All Contents Copyright © 1996-2017 Practising Law Institute. Continuing Legal Education since 1933.

© 2017 PLI PRACTISING LAW INSTITUTE. All rights reserved. The PLI logo is a service mark of PLI.