New rules for hedge funds, family offices

Hedge fund advisers will need to comply with new regulations that the Securities and Exchange Commission adopted new rules as part of the Government's desire for greater transparency from hedge fund industry in the Dodd-Frank financial reform bill.

Rules, approved by a 3-2 vote Wednesday, demanding that hedge fund companies as well as private investment advisors with assets under management of more than $ 150 million must register with the SEC.

They must also provide information on their activities including the amount of assets held by a special fund, types of investors in the Fund and Adviser services to the Fund.

But the rules comes with a caveat – they begin to not take effect until 30 March next year.

SEC Chairman Mary Schapiro hailed passage of the new regulations SEC after their passage.

"These rules fills an important gap in the regulatory landscape," Schapiro said in a statement.

The SEC also approved on Wednesday a new rule exempting "family Office" or entities established by wealthy investors to manage their personal portfolios from any regulation provided that they must be checked only by family members and advise clients only.

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