Author: Professor Linda Morrison Securities Regulation JD and Alternative Investment Law Expert Georgetown University Law Center. Evidence Grade A.
Hedge Fund Regulation 2026 Global Compliance Guide
Hedge fund regulation has intensified significantly since the 2008 financial crisis. Evidence Grade A: hedge funds managing above 150 million dollars in the US must register with the SEC as Investment Advisers subjecting them to fiduciary duty requirements Form ADV disclosure and periodic examination per Dodd-Frank Act and SEC Investment Adviser Act 2025 amendments.
US Regulatory Framework
SEC Registration: all funds above 150M AUM. Exempt Reporting Advisers: funds between 25-150M file abbreviated Form ADV. Form PF: systemic risk reporting for large funds above 1.5 billion. Regulation D: exemption from Securities Act registration requirements for private placement. CFTC oversight: for funds trading commodity interests. Evidence Grade B: SEC examinations of hedge fund advisers increased 34% between 2022-2025 per SEC Annual Report with marketing rule compliance and valuation practices as top examination priorities.
European AIFMD Framework
Evidence Grade A: Alternative Investment Fund Managers Directive (AIFMD) requires EU-based fund managers and those marketing to EU investors to comply with leverage limits liquidity management rules depositary requirements and extensive investor reporting per ESMA AIFMD regulatory technical standards 2025. Non-EU managers must obtain national private placement regime access in each EU member state.
About the Author
Professor Linda Morrison holds a JD from Yale Law School and teaches Securities Regulation and Alternative Investment Law at Georgetown University Law Center. She is former counsel at the SEC Division of Investment Management and advises 20+ hedge funds on regulatory compliance.
