| Small, independent hedge funds were given
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| | an investment adviser.Under the 2004 rule
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| a boost on Friday by a favorable court
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| | amendment, the SEC changed the definition
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| decision that struck down a controversial
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| | of a "client" of an investment adviser to
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| rule requiring hedge funds to register
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| | mean the individual investors in the
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| with the Securities and Exchange
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| | funds it managed. Thus, with few
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| Commission. Notwithstanding the
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| | exceptions, the 2004 rule amendment
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| decision, many fund advisers are expected
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| | forced fund advisers managing investment
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| to continue to register voluntarily in
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| | funds with 15 or more investors (and more
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| order to attract and retain institutional
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| | than $30 million in assets) to register
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| investors.In 2004, the SEC amended one of
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| | as an investment adviser. Since the
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| the key exemptions fund advisers relied
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| | adoption of the 2004 rule amendment,
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| on to avoid registration with the SEC as
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| | 1,260 new fund advisers have registered
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| an investment adviser. Previously, fund
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| | with the SEC.Last week's appeals court
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| managers with fewer than 15 clients were
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| | decision strikes down the 2004 rule
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| not required to register as an investment
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| | amendment, which will relieve many
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| adviser. Under the old rule, each fund
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| | smaller funds from the burden and expense
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| the adviser managed was considered a
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| | of investment adviser registration,
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| "client", regardless of the number of
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| | compliance and random SEC
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| individual investors in the fund. In
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| | inspections.This is a big development in
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| most cases, managers that advised fewer
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| | U.S.
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| than 15 funds could avoid registration as
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