Regulation
Hedge funds must conform to the national, federal and state regulatory laws in their respective locations. The U.S. regulations and restrictions that apply to hedge funds differ from its mutual funds. According to a report by the International Organization of Securities Commissions the most common form of regulation pertains to restrictions on financial advisers and hedge fund managers in an effort to minimize client fraud. On the other hand, U.S. hedge funds are exempt from many of the standard registration and reporting requirements because they only accept accredited investors. In 2010, regulations were enacted in the US and European Union, which introduced additional hedge fund reporting requirements. These included the U.S.'s Dodd-Frank Wall Street Reform Act and European Alternative Investment Fund Managers Directive.
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Famous quotes containing the word regulation:
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—Margarethe Cammermeyer (b. 1942)
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—Stephen Carter (b. 1954)