Treasury Announces Proposed Legislation to Require Registration of Private Fund Managers

By: Terrance J. O’Malley, Jessica Forbes, Richard I. Ansbacher, Shanna M. Cohn

On Wednesday, July 15, the Department of the Treasury (“Treasury”) announced proposed amendments to the Advisers Act that would require registration of currently-exempt private fund managers, including advisers to hedge funds, private equity funds and venture capital funds.  The bill (the “Bill”), entitled the “Private Fund Investment Advisers Registration Act of 2009,” also would establish significant reporting, recordkeeping and disclosure requirements for all private funds advised by a registered investment adviser.  The Bill effectuates a number of the suggested reforms included in Treasury’s white paper issued last month entitled “A New Foundation: Rebuilding Financial Supervision and Regulation.”

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