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ARTICLE · 13 JUNE 2010

The US Moves To Regulate Fund Managers

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Industry veterans will remember the 2004 attempt of the U.S. Securities and Exchange Commission (the "SEC") to regulate fund managers.

United StatesFinance and Banking
David Guin
David Guin
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Background

Industry veterans will remember the 2004 attempt of the U.S. Securities and Exchange Commission (the "SEC") to regulate fund managers. At that time, the SEC attempted to alter the rules investment advisers to funds were required to use to count clients. This represented the SEC's indirect attempt to deprive fund managers of the ability to rely on the so-called "Private Adviser Exemption" for investment advisers with fewer than 15 clients. Much to the relief of the funds industry, the U.S. Court of Appeals for the District of Columbia found that the SEC had exceeded its authority and nullified the new rule in a case styled Goldstein v. Securities & Exchange Commission.

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