Overview

On both sides of the Atlantic, the investment funds industry is being subjected to greater scrutiny and regulation.

In Europe, the draft AIFM Directive is still the cause of much debate, while in the United States the long-awaited overhaul of the financial markets has now become law with, implications for the wider funds industry (including for non-US managers). These new laws and other US developments are described in this article by Travers.

The Registration Act:

On 21 July 2010, the Private Fund Investment Advisers Registration Act was passed into law by President Obama. This forms part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Non-US managers of private funds which are offered in the US must now register with the SEC as "investment advisers" unless they fall within an exemption. This will apply, even if the non-US manager is regulated in its home country. For the purposes of the legislation, the term private funds covers a wide array of fund structures and asset classes, including investment vehicles set up for private equity, hedge, real estate, debt and infrastructure and funds of funds. However, generally you ignore public offerings to non-US persons outside the US.

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