Perhaps not surprising, Illinois has a very well developed Securities Division website which provides its investment advisors (and potential investment advisors) with many informative articles. In this article we have reprinted three separate resources which we found helpful for potential hedge fund managers located in Illinois.
The first resource provides a basic overview of investment advisors and the separation of regulatory jurisdiction between the federal government and the states. This resource is glib on whether hedge fund managers in Illinois need to register as investment advisors with the state – generally they do not. For those managers which are registered with Illinois, the second resource provides an overview of the potential for on-site examinations of the manager’s business. The final resource provides an overview of the different fees which an advisor registered (or notice filed) in Illinois will need to pay. Continue reading →
Below we have provided two separate sources from the South Carolina Securities Division Website. First, we have reproduced a very short blurb from their website which explains that investment advisors who have a place of business in South Carolina must generally be registered as an investment advisor. Second, we have reproduced their schedule and instructions for the state blue sky filings which need to be made by the hedge fund manager after the first sale of securities in the state. In general hedge fund interests are sold in accordance with a Regulation D 506 hedge fund offering. States generally have the authority to require Form D filings when a sale under 506 is made to residents of the state. In South Carolina the requirement is to make the Form D filing within 15 days of the first sale in South Carolina. The hedge fund manager will also need to send in a check for $300. Continue reading →
Georgia Hedge Fund Managers Generally Exempt From Registration
Below we have provided two separate sources from Georgia’s Securities Division Website. First, we have reproduced their frequently asked questions on investment advisor registration. Specifically it should be noted that Geogia based hedge fund managers do not generally need to register as investment advisors with the state of Georgia if they only manage one fund. While managers are not required to be registered, they still will need to make sure that they follow all necessary compliance rules which the hedge fund lawyer can remind them of. Continue reading →
Unfortunately for hedge fund managers who are located in Massachusetts, there is generally a requirement to be registered as an investment advisor with the Massachusetts Securities Division. One of the good things about the Massachusetts Securities Division is that they are generally knowledgeable and the division’s website posts good information for registered investment advisors. The posts below deal with (1) Massachusetts investment advisor renewals for 2009 and (2) a discussion of the submission requirements for ADV part II through the IARD system.
While these posts are helpful, Massachusetts hedge fund managers are urged to discussion any questions with a hedge fund attorney. Continue reading →
Florida is a very popular jurisdiction for hedge fund formation. Along with New York, Connecticut, California, and Texas, Florida ranks as one of the most popular hedge fund jurisdictions. I have included below a description of the investment advisor provisions from the Florida Securities Division website. One thing to note, as with all Securities Division websites, is that the information below is not the full picture. For instance, the notice below does not mention a common provision which exempts Florida hedge fund managers from investment advisor registration with the state. Continue reading →
In our continuing effort to expand our hedge fund law resources on this blog, we will be posting statutes and other legal resources from each of the states. Because each state has different laws and enforces those laws differently, hedge fund lawyers often discuss state specific hedge fund issues with the securities division prior to providing advice to clients. The post below provides information on Alabama’s regulation D requirements. Please contact us if you would like to establish an Alabama hedge fund or have questions on Alabama investment advisory issues. Continue reading →
One of the key issues which hedge fund managers will need to determine early in the hedge fund formation process is whether the management company will need to be registered as an investment adviser with the state securities commission (or potentially with the SEC). Generally the lawyer advising the management company will survey the state laws to determine whether or not registration is necessary. While the lawyer will look directly to the state statutes through some sort of online legal database such as Lexis Nexis (to ensure that the most current and up to date information is provided to the client), the hedge fund manager can also check with his state securities commission to see if registration is required. Sometimes states, such as Wisconsin, will include their registration information on their website. The notice below is typical of such a practice. Continue reading →