AIMA opposes proposed registration of non-US entities already subject to local regulation
AIMA filed a Submission yesterday on behalf of its members with regard to the Securities and Exchange Commission's (SEC) registration proposals.
The SEC's proposed new rule, issued in July, would require registration of most hedge fund advisers under the Investment Advisers Act of 1940.
AIMA stated that it does not, as a rule, usually involve itself in lobbying activities in the USA. However, given the likely impact on AIMA's global membership of the registration requirements proposed by the SEC, AIMA has participated in the consultation offered by the SEC.
It stated: "We have repeated our request that there be exemptions for advisers who are already subject to efficient regulation in their home jurisdiction and/or where they operate. The considerable and onerous likely impact on non-US fund managers and other interested parties, in terms of additional and significant regulatory burden and costs, has caused us to make representations to the SEC; almost all non-US hedge fund managers have US investors in their funds."
"In our Submission, we have endorsed the argument made in our earlier Response to the SEC on behalf of non-US interests, resisting registration for them and pointing out the undesirability of, and difficulties inherent in, separate and possibly duplicative regulatory, examination and enforcement regimes and requirements."
"We have submitted that local regulators, who are in constant contact with local industry practitioners and service providers, are in a better position to regulate and perform supervisory examination. We have also suggested that the SEC might learn more about the global hedge fund industry by continued cooperation and sharing of knowledge between established regulators already supervising this industry."
"As stated in our Submission, we will be sending copies of it to regulatory authorities in other relevant, non-US jurisdictions."
"Our members are, of course, keenly interested to learn whether the SEC will proceed with its registration requirements. AIMA is willing to answer any further questions which the SEC may have or to provide further information to them."
Having issued this statement and provided the link to the Submission on its website, AIMA will not be making any further comment at this stage.
AIMA's full Submission is available at: www.aima.org/uploads/AIMASECSubmission.pdf
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