Implications of Financial Services Reform for Hedge Funds and Private Equity Funds: Congress Has Adopted Sweeping Financial Reform that Will Impose New Regulations and Requirements on Hedge Funds and Private Equity Funds

Sullivan & Cromwell LLP - July 19, 2010

The Dodd-Frank Wall Street Reform and Consumer Protection Act is intended to address perceived deficiencies and gaps in the regulatory framework for financial services in the United States and implements far-reaching changes across the financial regulatory landscape. While it defers many of the details of these reforms to future rulemakings by a variety of federal regulatory agencies, which will need to address numerous ambiguities in the legislative language, it is clear that most hedge funds and private equity funds will be subject to the authority of one or more of these regulators. This memorandum provides a brief summary of those provisions of the legislation that may be of particular interest to hedge fund and private equity fund managers.