Hedge Fund Manager Registration Under the Dodd-Frank Act

80 Pages Posted: 22 Sep 2012 Last revised: 21 Jun 2013

See all articles by Wulf A. Kaal

Wulf A. Kaal

University of St. Thomas, Minnesota - School of Law

Date Written: 2012


For the last three decades, the SEC has repeatedly yet unsuccessfully attempted to register hedge fund managers. Resolving the tension between the industry and regulators regarding the appropriate level of regulatory oversight, the Dodd-Frank Act mandates hedge fund adviser registration as well as increased record-keeping and disclosure. To provide guidance for policy makers, this article presents the results of the first survey study after the SEC’s registration effective date, March 30, 2012.

The author and a team of four research assistants contacted a population of 1,264 private fund advisers that registered with the SEC before the registration effective date. The entire population was approached via fax, in an electronic survey via email, and in phone interviews. Respondents (n=[94]) answered questions designed to evaluate the long-term effect of reporting and disclosure rules on private funds and the private fund industry. The survey questions assess strategic responses of the hedge fund industry, investigate the possible long-term effects of hedge fund registration, quantify compliance cost, assess compliance measures, investigate the implications of disclosure requirements in the Dodd-Frank Act pertaining to hedge funds, evaluate the effect of the regulatory regime on assets under management, and assess the effect of the regulatory regime on profitability.

The results reported in this study suggest that the Dodd-Frank Act registration and disclosure requirements and the SEC’s implementation of these requirements create several areas of concern for the hedge fund industry. Despite these concerns, the hedge fund industry appears to be only moderately affected and seems to be adapting well to the regulatory environment after the enactment of the Dodd-Frank Act.

Keywords: Hedge Funds, Dodd-Frank Act, Registration, Disclosure, Form ADV, Form PF

Suggested Citation

Kaal, Wulf A., Hedge Fund Manager Registration Under the Dodd-Frank Act (2012). San Diego Law Review, Vol. 50, 2013, U of St. Thomas Legal Studies Research Paper No. 12-30, Available at SSRN: https://ssrn.com/abstract=2150377

Wulf A. Kaal (Contact Author)

University of St. Thomas, Minnesota - School of Law ( email )

MSL 400, 1000 La Salle Avenue
Minneapolis, MN Minnesota 55403-2005
United States

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