Publications
Schulte Lawyers Update Definitive Book on Formation, Operation and Regulation of Hedge Funds
ALM Law Journal Press
February 2019
Schulte lawyers have updated their comprehensive book on hedge funds, Hedge Funds: Formation, Operation and Regulation, published by ALM’s Law Journal Press. Addressing legal and practical issues of importance to counsel for both sponsors and investors, the book explains the complete spectrum of hedge fund investment structuring, operation and regulation.
Since the first funds were established over 60 years ago, the hedge fund industry has grown dramatically in size and complexity. More than just a passing phenomenon, hedge funds are now an important part of global asset management; and increasingly the focus of new legislation and regulation. This up-to-date and forward-looking guide explains topics including hedge fund investment strategies, domestic and off-shore hedge fund structure and tax considerations, terms, fees, and related considerations for sponsors and investors, regulatory requirements and fiduciary obligations of investment advisers, fund documentation, including marketing materials, offering memoranda, governing documents and related and agreements; and structuring a hedge fund management company.
The Schulte authors represent a broad range of practices and include investment management partners Stephanie Breslow, Jennifer Dunn, David Efron, Marc Elovitz, Christopher Hilditch, Daniel Hunter, Jason Kaplan, Anna Maleva-Otto, David Nissenbaum and Paul Roth, special counsel Patrick Dundas and associate Christopher Avellaneda; broker-dealer regulatory & enforcement special counsel David Sieradzki; employment & employee benefits partners David Cohen, Ian Levin and Holly Weiss; finance partner Daniel Oshinsky; litigation partner Gary Stein and lawyer Betty Santangelo; M&A and securities partner Peter Halasz and special counsel Gregory Kinzelman and Adriana Schwartz; finance & derivatives partner Craig Stein and associate Sean Locklear; and tax partners Philippe Benedict and Shlomo Twerski, special counsel David Griffel and associate David Wermuth and former Schulte lawyers Brian Daly, Brad Caswell, Theodore Franzese, Kenneth Gerstein, Lawrence Goldberg, Seetha Ramachandran, Max Schwartz and Joseph Vitale.
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Alerts
On June 28, 2024, the US Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) issued a notice of proposed rulemaking that would amend existing anti-money laundering/countering the financing of terrorism (“AML/CFT”) program[1] regulations to require that financial institutions establish, implement and maintain effective, risk-based and reasonably designed AML/CFT programs with certain minimum components, including a mandatory risk assessment process (hereinafter, “Proposed Rule”).[2] For purposes of the Proposed Rule, “financial institutions” include: banks; broker dealers; mutual funds; futures commission merchants (“FCMs”) and introducing brokers in commodities (“IB-Cs”); insurance companies; money services businesses (“MSBs”); casinos and card clubs; dealers in precious metals, precious stones or jewels; operators of credit card systems; loan or finance companies; and housing government sponsored enterprises.[3] In addition to establishing minimum risk assessment requirements for these AML/CFT programs, the Proposed Rule would require that financial institutions document each component of their AML/CFT programs and make this documentation available to FinCEN or its designee, which can include the appropriate agency to which FinCEN has delegated examination authority,[4] or the appropriate SRO.[5] The Proposed Rule would also require that these AML/CFT programs be approved and overseen by the financial institution’s board of directors or, if the financial institution does not have a board of directors, an equivalent governing body.
Alerts
On June 28, 2024, the US Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) issued a notice of proposed rulemaking that would amend existing anti-money laundering/countering the financing of terrorism (“AML/CFT”) program[1] regulations to require that financial institutions establish, implement and maintain effective, risk-based and reasonably designed AML/CFT programs with certain minimum components, including a mandatory risk assessment process (hereinafter, “Proposed Rule”).[2] For purposes of the Proposed Rule, “financial institutions” include: banks; broker dealers; mutual funds; futures commission merchants (“FCMs”) and introducing brokers in commodities (“IB-Cs”); insurance companies; money services businesses (“MSBs”); casinos and card clubs; dealers in precious metals, precious stones or jewels; operators of credit card systems; loan or finance companies; and housing government sponsored enterprises.[3] In addition to establishing minimum risk assessment requirements for these AML/CFT programs, the Proposed Rule would require that financial institutions document each component of their AML/CFT programs and make this documentation available to FinCEN or its designee, which can include the appropriate agency to which FinCEN has delegated examination authority,[4] or the appropriate SRO.[5] The Proposed Rule would also require that these AML/CFT programs be approved and overseen by the financial institution’s board of directors or, if the financial institution does not have a board of directors, an equivalent governing body.