SEC Registration
For US-based hedge funds, we provide high-touch company registration and authorization services for both the Securities Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Hedge fund programs
Our SEC registration programs for hedge funds work in parallel with your Chief Compliance Officer in order to assist with the registration process and implement a tailored compliance manual. We will assist you in developing a compliance program that includes policy and procedures design and administration and that is consistent with the Investment Advisers Act of 1940 (the “Adviser’s Act”).
SEC Form ADV filings
Our registration programs include working closely with you to complete all parts of your Form ADV registration including Form ADV Part 1A, Form ADV Part 2A (the “Brochure”) and Form CRS (your client relationship summary) where applicable. We will file your initial Form D in addition to supporting your ongoing state Blue Sky filings where necessary. Once authorized, we provide ongoing support for SEC filings and annual reporting obligations.
Ongoing compliance programs for hedge funds
Each of our hedge fund compliance programs are designed to address the unique compliance risk considerations of your fund, private equity, or venture capital advisory business. Such risks include evaluation and adequacy of:
- ADV Part 2A Brochure disclosures – this should outline the advisor’s business practices, fees, conflicts of interest, and other important information that clients need to know.
- AML procedures – hedge funds and other institutions are required by law to have robust AML programs in place.
- marketing and advertising practices – ensuring your marketing and advertising practices are fair, accurate, and not misleading.
- compliance filing procedures – this may include filing periodic reports, submitting certain disclosures, and maintaining accurate records.
- Code of Ethics implementation – hedge funds must have robust codes of ethics that address conflicts of interest, insider trading, and other ethical concerns.
- adherence to fiduciary obligations – hedge funds are expected to act in the best interests of their investors at all times. This may include disclosing conflicts of interest, avoiding self-dealing, and other fiduciary responsibilities.
We work closely with each investment adviser to administer policies and procedures designed to mitigate your compliance risk. To learn more about our SEC registration services, get in touch with a Waystone Compliance Solutions representative today.
Outsourced Compliance Provider
Is an outsourced CCO appropriate for your organization? Our guide can help you decide what is suitable for you by breaking down SEC guidance on CCO best practices, noting where outsourced CCOs struggle, and offering advice on how to effectively use outside compliance providers.
Exemptions from SEC registration
Filing a Form ADV ERA
If your business is not required to register with the SEC due to a relevant exemption, we will work with you to file Form ADV ERA as an exempt reporting adviser and tailor a compliance program consistent with your exemption status that meets all relevant aspects of the Adviser’s Act.
SEC registration for foreign advisers
Non-US investment advisers, with no principal place of business within the United States (“Foreign Advisers”), providing investment advice to United States persons (including funds with US investors) are subject to the Investment Advisers Act of 1940 (the “Advisers Act”). Foreign Advisers must register with the SEC, subject to certain minimum threshold requirements, unless eligible for an exemption.
Path to Registration
To read our detailed examination of the three primary exemptions that are applicable to foreign advisers under the Advisers Act.