Articles | Butterfield FulcrumButterfield Fulcrum

Coming out of the credit crisis, and especially following the fraudulent activity of Bernie Madoff, increased investor transparency became a major requirement, most notably for large, institutional investors.  Over the last few years, this has extended from a concern of simply the largest investors to be shared by all members of the alternative investment community.  To handle the matter, fund administrators began to introduce independent transparency reporting to investment managers and the investors they serve.

Much has been made in recent weeks about the passage and adoption of the JOBS Act, which at its core has been crafted to assist small businesses in raising capital and help stimulate job growth and the economy. More specifically, there are changes to alternative investment managers and their funds, notably surrounding the ability of hedge funds to now market themselves to accredited investors. For decades, marketing was not permitted for hedge funds, so the JOBS Act marks a substantial change with respect to what hedge funds can and cannot do with respect to external communications.