When it comes to the way in which banks report the effects of financial instruments, the position of the global accounting firms is crucial. This article explores the difficulties ahead. It suggests that fair value has a place in the system but that using them to report earnings would create...

Purpose – To describe the role and requirements for the chief compliance officer (CCO), appointed by hedge fund managers within an investment advisory firm. Design/methodology/approach – Summarizes Rule 203(b)(3)‐2 under the 1940 Investment Advisers Act, provides a recent case study in...

Purpose – This paper seeks to discuss the Guidance Note on disclosure of hedge fund side letters issued by the UK's Alternative Investment Management Association (AIMA) in September 2006. Design/methodology/approach – Explains the meaning of “material” and “non‐material” and...

Purpose – The purpose of this paper is to explain restrictions on nonqualified deferred compensation arrangements contained in Section 409A of the Internal Revenue Code. Design/methodology/approach – The study explains the background to Section 409A, how Section 409A applies to hedge funds,...

Purpose – The purpose of this paper is to discuss state securities legend requirements for private offerings made pursuant to Rule 506 of Regulation D, with a particular focus on hedge fund and private equity fund issuers. Design/methodology/approach – The paper explains relevant federal and...

Purpose – The purpose of this paper is to remind sponsors and managers of hedge funds and private funds (including private equity and venture capital funds) of certain “best practices” that they should consider. Design/methodology/approach – The paper offers considerations concerning:...

Purpose – The purpose of this paper is to explain some tax management complications for onshore and offshore hedge funds posed by US FIN 48, Uncertain Tax Positions, and to emphasize the hedge fund manager's responsibility for careful tax planning and compliance. Design/methodology/approach...

Purpose – This paper aims to give an overview of the English law position on potential liability for misstatements and claims which investors may be considering. Design/methodology/approach – The paper discusses liability for information contained in prospectuses, where liability for...

Purpose – The purpose of this paper is to offer case studies of hedge fund fraud, solutions that could mitigate hedge fund fraud risk, and a proposal for the industry to establish a hedge fund information depository (HFID) where participants/stakeholders could provide information on any hedge...

Purpose – The purpose of this paper is to to summarize Advisers Act registration implications for non‐US advisers that now rely on the “private adviser” exemption from Advisers Act registration and to summarize the principal changes affecting investors in funds managed by non‐US...