HOW TO SET UP A HEDGE FUND

Hedge Fund and Limited Partnership Services

Hedge Funds - Limited Partnerships have unique compliance and organizational requirements. Clients are helped in identifying individual needs, and then provided customized services tailored to meet those needs. These customized services often include:

Start-up Requirements:

• Identify federal and state Investment Adviser registration requirements of General Partner.

• Prepare Form ADV; ensure consistency with offering material. Prepare Investment Adviser registration materials for all states, as required. Provide start-up files for registration documents.

• Identify Blue Sky filing requirements of the investment vehicle. Prepare filings, or work with attorney, to ensure all filings are completed in a timely manner.

• If appropriate, provide both ERISA and non-ERISA advisory agreements for separately manage accounts.

• Assist professionals to schedule and prepare for required FINRA examinations, if required.

• Train personnel in all aspects of day-to-day operations and the trading cycle -- including placing trades, tracking settlements, reconciling broker statements, record keeping, and portfolio accounting. Establish effective filing systems for regulatory compliance in all areas.

• Develop personal security transaction policy and insider trading policy based on existing trading practices; provide required regulatory documentation.

• Review partnership agreement and offering material for compliance with investment adviser regulations and reasonable operational requirements.

• Work with attorney to ensure that all partnership and corporate filings (if appropriate) are submitted to regulatory agencies in a timely manner.

Ongoing Support:

• Respond to most compliance and organizational questions surrounding the investment advisory and hedge fund environments.

• Provide compliance calendar and timely reminders of regulatory filing requirements; identify regulatory filing requirements for partnership and investment adviser in additional states; complete filings or provide assistance in preparation of filings.

• Provide expertise in day-to-day portfolio accounting and trading issues; work with brokers (including prime broker) to establish accounts and good working relationships; work with bookkeepers and accountants to facilitate a smooth audit.

• Review ongoing compliance with investment advisory and other regulatory requirements; review executed subscription agreements as received for compliance with offering material and regulations.

Exams:

Generally, the fund managers must register as Registered Investment Advisers -- requiring a Series 65 exam or a combination of the Series 7 and 66 exams.  

If the fund is going to trade commodity futures contracts, the Series 3 exam is often required.

Passing the exam is not the only step; you must complete the entire registration process and pass all exams before any solicitation begins.

     Contact us at (800) 648-7277 for a referral to firms who specialize in this area.

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