About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

US SEC Adds More Data Requirements to its Proposed Hedge Funds Rules

Subscribe to our newsletter

The US Securities and Exchange Commission (SEC) has added a further set of data disclosure requirements to those it is proposing for the hedge funds market as part of the Dodd-Frank reforms. Under the proposed reforms, more organisational and operational information will be needed for SEC registration purposes from investment advisers and the private funds they manage in order to better judge counterparty risk in the traditionally opaque hedge funds sector.

The basic organisational and operational information includes the amount of assets held by the fund, the types of investors in the fund, and the adviser’s services to the fund. The rules also provide for the identification of five categories of “gatekeepers” that perform critical roles for advisers and the private funds they manage: auditors, prime brokers, custodians, administrators and marketers.

The rule changes, which are part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, permit the SEC to require hedge funds to register with the regulatory body by closing the current loophole under the Investment Company Act of 1940. SEC chairman Mary Schapiro explains: “The enhanced information envisioned by these proposed rules would better enable both regulators and the investing public to assess the risk profile of an investment adviser and its private funds.”

These new classifications and reference data items must therefore be maintained by investment advisers and reported to the regulator in the formats requested, should the rule changes be approved. The rules also include more details about who is exempt from providing these reports, such as venture capital funds.

The SEC is seeking public comment on the proposed rules for a period of 45 days following their publication in the Federal Register. See the SEC website here for more details.

Europe is also seeking to impose new transparency requirements on the hedge fund sector, although the requirements on this side of the pond are not as detailed.

As for identification of individual hedge funds themselves, Cusip Global Services (CGS) has said that it is planning the launch of its Cusip for hedge funds service for the fourth quarter of this year. CGS signed up to work in partnership with hedge fund and fund of hedge fund information provider HedgeFund.net to produce a Cusip identification system for hedge funds and funds of hedge funds on a global basis in June 2009 and has since added around 4,000 hedge fund identifiers to its database.

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: Navigating a Complex World: Best Data Practices in Sanctions Screening

5 November 2025 10:00am ET | 3:00pm London | 4:00pm CET Duration: 50 Minutes As rising geopolitical uncertainty prompts an intensification in the complexity and volume of global economic and financial sanctions, banks and financial institutions are faced with a daunting set of new compliance challenges. The risk of inadvertently engaging with sanctioned securities has...

BLOG

Three Predictions for the ESG Year Ahead from ESG Data and Tech Briefing Keynote Speaker Barrie Ingman

What a difference a year makes. At A-Team Group’s last big ESG event, in the spring of last year, delegates were still buoyant about the ESG space even after a bruising 12 months in which anti- sustainability rhetoric had risen again. Calls among conservatives in the US to backpedal on regulatory controls combined with the...

EVENT

AI in Capital Markets Summit New York

The AI in Capital Markets Summit will explore current and emerging trends in AI, the potential of Generative AI and LLMs and how AI can be applied for efficiencies and business value across a number of use cases, in the front and back office of financial institutions. The agenda will explore the risks and challenges of adopting AI and the foundational technologies and data management capabilities that underpin successful deployment.

GUIDE

The DORA Implementation Playbook: A Practitioner’s Guide to Demonstrating Resilience Beyond the Deadline

The Digital Operational Resilience Act (DORA) has fundamentally reshaped the European Union’s financial regulatory landscape, with its full application beginning on January 17, 2025. This regulation goes beyond traditional risk management, explicitly acknowledging that digital incidents can threaten the stability of the entire financial system. As the deadline has passed, the focus is now shifting...