Compliance for Hedge Funds

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The world’s leading fund sponsors and advisers turn to Ropes & Gray for help navigating complex regulatory and compliance matters.

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Overview

With one of the largest and most diversified investment fund practices of any firm, we are eminently qualified to assist sponsors of hedge funds, private equity funds and other private funds in navigating registration and compliance requirements under the Investment Advisers Act, the Commodity Exchange Act and other regulatory regimes.

We counsel numerous marquee investment advisers registered under the Investment Advisers Act, as well as exempt reporting advisers, venture capital advisers and foreign private advisers.

In addition, our CFTC experts in our Chicago office worked with hundreds of investment managers last year reviewing their CFTC registrations in light of changes to the rules. 

Comprehensive Capabilities

We are able to leverage synergies across practice groups to provide investment adviser clients with sophisticated and knowledgeable advice about issues such as privacy and data security, identity theft, and social media. We also work closely with the firm’s litigation group to provide clients with advice about anti-corruption laws and the rules surrounding political contributions, among other matters. 

Experience

Ropes & Gray’s hedge funds group offers clients:

Singular Insight into Current SEC Concerns and Interpretations 

  • We recently represented over 70 hedge fund and private equity managers in registering as investment advisers with the SEC following the adoption of the Dodd-Frank Act adviser registration rules.
  • Our attorneys also have extensive experience advising clients in SEC examinations, including routine and sweep examinations, for-cause examinations, and so-called focused examinations.

Significant Experience Counseling Non-U.S. Advisers 

  • We regularly advise our non-U.S. clients on the U.S. regulatory framework and the establishment of global compliance programs. 
  • We counsel clients on day-to-day compliance matters, including trading and allocation issues, issues related to principal and cross transactions, insider trading, use of expert networks, ethical walls, and other complex compliance issues.

Unsurpassed Counsel on Compliance with Commodities and Futures Regulation 

  • We have advised many fund managers on commodity pool operator (CPO) and commodity trading advisor (CTA) issues under the Commodity Exchange Act, including registration as CPOs and CTAs and reliance on exemptions from registration. 
  • For registered CPOs and CTAs, we have extensive experience navigating Commodity Futures Trading Commission (CFTC) and National Futures Association (NFA) requirements, as well as advising on regulatory developments, compliance matters and trading issues.
  • We also have experience providing compliance and ethics training and advising clients on NFA examinations.