Update on Increasing Focus on Alternative Investment Vehicles in Washington

July 16, 2007

Last week, several legislative and regulatory developments continued to alter the landscape for alternative investment vehicles, with continued focus by Congress and regulators in Washington. Below is a summary of those events.

First, the U.S. Securities and Exchange Commission unanimously approved new regulations under Rule 206 of the Investment Advisers Act of 1940 that prohibit investment advisers to certain pooled investment vehicles, including hedge funds and private equity funds, whether or not they are registered with the SEC, from making false or misleading statements to, or otherwise defrauding, investors or prospective investors in those pooled vehicles. These regulations serve to close the gap that was highlighted by last year’s Goldstein decision.

For more information about this e-Alert, please contact Tony Perricone, Chair, Fund Services Group (212.398.5290 or aperricone@sonnenschein.com), Mike McNamara, Chair, Public Law & Policy Strategies Group (202.408.6477 or mmcnamara@sonnenschein.com) or your regular Sonnenschein contact.

Click here to read the full e-Alert.


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