Presentation at the Canadian Law and Economics Association annual meeting on September 29, 2013 in Toronto: The Impact of Compliance Cost of Financial Regulation - Evidence from the Private Fund Industry by Wulf A. Kaal Abstract A common complaint about financial regulation is that it predominantly affects smaller firms because the cost of compliance brings increasing […]Read more "Presenting on “Hedge Fund Compliance Cost” at Canadian Law & Economics Association in Toronto"
Presentations at the Canadian Law and Economics Association annual meeting on September 28, 2013 in Toronto. Dynamic Regulation of the Financial Services Industry Wulf A. Kaal University of St. Thomas, Minnesota – School of Law 2013 Wake Forest Law Review, 2014, Forthcoming U of St. Thomas (Minnesota) Legal Studies Research Paper No. 13-24 Abstract: Governance adjustments […]Read more "Presenting on “Dynamic Regulation” at Canadian Law & Economics Association in Toronto"
The SEC yesterday approved final rules implementing one of the most important changes to securities regulation and offering practices in decades, as mandated by Congress in the Jumpstart Our Business Startups (“JOBS”) Act: to lift the ban on general solicitation or advertising in offerings to accredited investors that are exempt from registration under Rule 506 […]Read more "The Hedge Fund Industry after the Lift of the Ban on General Solicitation"
I previously commented on the bright future for the hedge fund industry. More good news for the industry it seems: private funds could find the ban on general solicitation lifted very soon under SEC rules implementing the provisions of the JOBS Act. Europe’s pending new AIFM regime for alternative investments is stricter but still has lots […]Read more "Lifting the Ban on General Solicitation for Private Funds"
Presenting initial findings of this study on June 14th at the 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 […]Read more "The Effect of the Dodd-Frank Act on the Hedge Fund Industry"
The Financial Times reports that hedge funds have transformed themselves and are increasingly influencing policy. My own work provides some empirical support for these observations. My study “Hedge Fund Manager Registration under the Dodd Frank Act” shows that hedge fund managers are only mildly affected by unprecedented registration and disclosure obligations under the Dodd-Frank Act and will be […]Read more "A Bright Future for the Hedge Fund Industry and its Impact on Policy Making"
Despite the role of collateralized debt obligations (CDOs) in the financial crisis of 2007-08, CDOs and other high risk investment products may soon be available again and are likely to proliferate. The WSJ reports that J.P. Morgan Chase and Morgan Stanley bankers are assembling synthetic CDOs to satisfy demand for structured products by investors who seek high […]Read more "The Return of CDOs – Do We Need Dynamic Elements in Financial Regulation?"
Growing German power in Europe and the divisiveness and resentment that it generates have become one of the main topics in European politics. Curtailing German power was in many ways a founding principle for Europe. Alas, recent events in Cyprus and the bailout deal, lead by Germany, involving haircuts for Cypriot depositors as a form […]Read more "Balancing German Power in Europe"
Before the Euro crisis it was considered politically incorrect, even xenophobic, to suggest that standards of probity in public life vary widely across Europe. For an institution dedicated to an “ever closer union” this notion is a problem. The bailout deal for Cyprus (right after balancing the German budget -while its southern neighbors are struggling […]Read more "Political opportunism in Germany deepens the gap in trust and political cultures between northern and southern Europe"
UBS is the latest bank to issue a debt bonus in the form of contingent capital notes (CoCos) to its top executives. The UBS issuance follows similar programs set up by Barclays and Credit Suisse. This emerging trend has many beneficial implications but debt bonus programs for executives can be further optimized. Banks’ debt based […]Read more "Improving Debt Bonus Programs for Executives"