AIMA supports the registration of Hedge Fund Managers in the U.S. – with exemptions for recognised registration elsewhere
04 November 2009
AIMA support comes as Representative Kanjorski’s Bill that will require hedge fund managers operating in the U.S. to register with, and be supervised by, the SEC won bi-partisan support from the House Financial Services Committee.
The Alternative Investment Management Association (AIMA) – the global hedge fund industry association – has reiterated its support for the registration of hedge fund managers in the U.S. and for the reporting of systemically relevant information by larger managers to national authorities in the interests of financial stability.
The move comes as the bill (sponsored by Rep. Paul Kanjorski) that will require hedge fund managers operating in the U.S. to register with and be supervised by the Securities and Exchange Commission (SEC) won bi-partisan support from the House Financial Services Committee. The Private Fund Investment Advisers Registration Act 2009 will make the registration of hedge fund managers in the U.S. mandatory for the first time.
Todd Groome, AIMA Chairman, said: “We have supported the registration of managers in the U.S. and elsewhere as well as the reporting of systemically relevant information to national authorities in the interests of financial stability. Our industry recognizes the need to constructively support efforts to improve financial stability analysis and has worked with U.S. authorities voluntarily in this regard for many years.”
The bill now faces a vote on the floor of the House - possibly in early December - before it is sent to the Senate. This process allows for further revisions to be made to the bill, and AIMA will continue to work with policymakers to address several areas where the bill may be improved before it is passed into law.
The bill also has implications for non-U.S. managers who could face ‘dual registration’. AIMA is seeking a full exemption from registration in the U.S. for non-U.S. fund managers who are already registered in a ‘relevant jurisdiction’, such as those based in an OECD country or others especially where the domestic regulator may cooperate and share information with the SEC.
© AIMA - Alternative Investment Management Association
