The Effect of the Dodd-Frank Act on the Hedge Fund Industry
Presenting initial findings of this study on June 14th
2013 Junior Scholars Workshop on Financial Services Law at the University of Connecticut School of Law
Here is the tentative abstract:
Creating a paradigm shift for private fund regulation in the United States, Title IV of the Dodd-Frank Act mandates hedge fund adviser registration and increased disclosures. Anecdotal evidence suggests that Title IV disproportionally affects smaller hedge fund advisers, leading to barriers to entry for startups and consolidation of the hedge fund industry. To estimate the effect of Title IV, this study evaluates survey data collected after the registration effective date for hedge fund advisers under Title IV. The author finds that the size of hedge fund advisers as measured by assets under management is associated with the cost of Title IV compliance and other independent variables. These findings are inconsistent with the hypothesis that smaller hedge fund advisers are more affected by Title IV compliance than mid-sized and large hedge fund advisers. Adviser size may not matter as much for policy adjustments and SEC rule making as the hedge fund industry claimed.
- A Bright Future for the Hedge Fund Industry and its Possible Impact on Policy Making (themarketmaker.org)
- A Bright Future for the Hedge Fund Industry and its Impact on Policy Making (wulfkaal.com)
- Morrison and Foerster Summarizes the Status of Dodd-Frank as it approaches three years (clsbluesky.law.columbia.edu)