Today, the US SEC adopted a final rule that amends the definitions of securities “dealer” and “government securities dealer” that will require certain hedge funds and, potentially, advisers to register as dealers or government securities dealers if they meet one of two qualitative standards.

Commenting on the US SEC rulemaking, Jack Inglis, AIMA CEO, said:

"The US SEC has incorrectly concluded that customers of dealers, including certain AIMA members, may be dealers themselves – a clear departure from the statutory definition and understanding of what it has meant to be a securities ‘dealer’ for the past 90 years.  Although the Commission did not adopt some problematic aspects that were included in the proposed rule, the final rule may nonetheless capture certain funds and strategies and therefore subject them to potential registration as a dealer and government securities dealer.  AIMA will review the final rule text and assess next steps."