Fund management—USA—Q&A guide

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • Fund management—USA—Q&A guide
  • 1. How is fund management regulated in your jurisdiction? Which authorities have primary responsibility for regulating funds, fund managers and those marketing funds?
  • 2. Is fund administration regulated in your jurisdiction?
  • 3. What is the authorisation or licensing process for funds? What are the key requirements that apply to managers and operators of investment funds in your jurisdiction?
  • 4. What is the territorial scope of fund regulation? Can an overseas manager perform management activities or provide services to clients in your jurisdiction without authorisation?
  • 5. Is the acquisition of a controlling or non-controlling stake in a fund manager in your jurisdiction subject to prior authorisation by the regulator?
  • 6. Are there any regulatory restrictions on the structuring of the fund manager’s compensation and profit-sharing arrangements?
  • 7. Does the marketing of investment funds in your jurisdiction require authorisation?
  • 8. What marketing activities require authorisation?
  • 9. What is the territorial scope of your regulation? May an overseas entity perform fund marketing activities in your jurisdiction without authorisation?
  • More...

Fund management—USA—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to fund management in USA published as part of the Lexology Getting the Deal Through series by Law Business Research (published: May 2020).

Authors: K&L Gates LLP—Michael W. McGrath; Clair E. Pagnano; Pablo J. Man; Abigail P. Hemnes

1. How is fund management regulated in your jurisdiction? Which authorities have primary responsibility for regulating funds, fund managers and those marketing funds?

The US Securities and Exchange Commission (SEC) is the regulatory authority primarily responsible for the oversight of fund management and offering activities in the United States. The substantive regulation is as follows:

  1. the US Securities Act of 1933, as amended (the 1933 Act), which governs the offer and sale of securities, including fund interests;

  2. the US Securities Exchange Act of 1934, as amended (the Exchange Act), which governs the marketing and sale of fund interests by broker-dealers;

  3. the US Investment Company Act of 1940, as amended (the 1940 Act), which governs the structure and operation of funds (or ‘investment companies’ as they are referred to under US law); and

  4. the US Investment Advisers Act of 1940, as amended (the Advisers Act), which governs the activities of fund sponsors and portfolio managers.

Registered and private funds

Investment companies that are marketed and sold to the general public must be registered under the 1940 Act (registered funds). Registered funds can

Popular documents