To Deregister, or Not to Deregister? The Registered Hedge Fund Adviser's Dilemma

White Paper: To Deregister, or Not to Deregister? (PDF, 5 pages)

The deadline has passed for the SEC to appeal the 2006 federal court decision overturning the SEC hedge fund adviser registration rule; the order vacating the rule is final. Hedge fund advisers that registered as a result of the rule now have a choice:

• Should they deregister, seizing an opportunity for less intrusive regulation?
• Or are there compelling reasons for them to remain registered even if it is no longer required?

Each position has its pros and cons. The following is a brief overview of what SEI, other industry experts and SEI’s hedge fund clients are thinking.