Managers of hedge funds and other private pools of capital with assets of $150 million or more under management will be required to register at the SEC under regulations the agency proposed on Friday.
The proposed regulations, which would exempt managers of venture capital funds, would require managers to provide information about their assets, types of investors in their funds and the services provided by the managers, according to an SEC fact sheet.
The agency also is considering enhancing its registration form to require all registered managers to list types of clients they advise and “their business practices that may present significant conflicts of interest (such as the use of affiliated brokers, soft dollar arrangements and compensation for client referrals),” according to the fact sheet.
Also under the proposed regulations, managers of venture capital funds and others exempt from the general registration requirement would have to report to the agency on their ownership, affiliations “and about other business activities that the adviser and its affiliates are engaged in that present conflicts of interest that may suggest significant risk to clients,” the SEC fact sheet said.
The public will have 45 days to comment on the proposed regulations — required by the Dodd-Frank Wall Street Reform and Consumer Protection Act — after they are published in the Federal Register, said Kevin Callahan, an SEC spokesman.