QUESTION FOR CANDIDATES TAKING THE SIE EXAM: ARE HEDGE FUNDS EXEMPT FROM PERIODIC REPORTING TO THE SEC?

Hedge funds formerly were unregulated and not subject to reporting and filing disclosures with the SEC. Those times don't exist any more. Now, hedge funds must register with the SEC as investment advisers, their employees must register with individual states and take and pass the investment adviser representative exam, and hedge funds must file periodic reports and disclosures with the SEC. 

Applicants going to sit for the Securities Industry Essentials (SIE) exam should be ready to answer questions about hedge funds. FINRA's SIE Content Outline lists hedge funds as important in Section 2.1.8.

Bob Eder has a full description of hedge funds in his Study for the Securities Industry Essentials (SIE) Exam. Here is an example of what Bob Eder says about hedge funds:

Hedge Funds (2.1.8)

These funds are private pools of managed money that largely in the past escaped SEC registration as "investment companies." However, today, hedge funds are far from being unregulated privileged entities. The Dodd-Frank Act of 2010 subjects hedge funds to periodic disclosure and reporting requirements. Furthermore, the Dodd-Frank Act requires that hedge funds register with the SEC as investment advisers under the Investment Adviser Act. Consequently, employees must take and pass the Series 65 or Series 66 exam to be registered in the various states.

Here is the link to FINRA's Content Outline for the SIE exam. See the references to Hedge Funds in FINRA's Content Outline, section 2.1.8.

Study for the Securities Industry Essentials (SIE) Exam is available from Amazon in both paperback and Kindle e-book versions. Here is the link to Bob Eder's book on Amazon.

For questions about Bob Eder's SIE manual, Study for the Securities Industry Essentials (SIE) Exam, or questions in general about the SIE exam, such as questions about hedge funds, feel free to email Bob Eder at bobeder@bobeder.net.

Bob Eder received his Juris Doctor (J.D.) degree from the University of Utah, Quinney College of Law, in 2001. See Bob Eder's Author Page on Amazon.com.


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