New rules under the Investment Advisers Act of 1940 affect investment advisers depending on status

CFTC approves proposed rule regarding exemptions from certain requirements for commodity pool operators, commodity trading advisers and commodity pools

Relying on our years of pragmatic legal and business fund manager experience and know-how across the fund manager organization enterprise, we have executed a number of viable offshore start-up private fund vehicles for clients seeking to manage fund formation start-up costs and increase the likely-hood of the investment manager's short term fund formation and long-term hedge fund or private equity fund execution success. The decision where to form a private hedge fund or private equity fund, form of fund formation structure, how to execute the fund manager strategy, the use and management of offshore providers is critical and can offset a material portion of both the short term and long term variable and/or fixed private fund manager costs across regulatory, filing fees and offshore legal fees.

Under the prior definition of a QEP, certain persons (including natural persons who are accredited investors, among others) must meet one of two compliance thresholds or a combination of the two in a private fund.  The newly adopted Portfolio Requirement doubles the amounts of the two thresholds: The Securities Test will be set at $4 million and the Initial Margin and Premium Test will be set at $400,000 for commodity pooled private fund offerings and managed accounts trading in commodities

Effective October 1, 2024, Florida allows for both increased opportunities for Florida-based businesses to raise capital within Florida and strengthened licensing and anti-fraud provisions substantially revising Florida Securities and Investor Protection Act for Florida exemption of investment advisers and its private funds as well as forms and types of private fund offerings for exempt investment advisers to private funds

The court recently granted the US government’s request for an emergency stay of a nationwide preliminary injunction against the government’s enforcement of the Corporate Transparency Act (CTA) that was issued by the District Court for the Eastern District of Texas on December 3, 2024. The stay reintroduced the January 1, 2025 deadline for filings under the CTA for reporting companies formed prior to January 1, 2024. The Financial Crimes Enforcement Network (FinCEN) issued guidance extending the filing deadline to January 13, 2025 for most reporting companies.  Reporting companies before January 1, 2024 must file by January 13, 2025

• Reporting companies created/registered in the United States on or after September 4, 2024, and with a filing deadline between December 3, 2024 and December 23, 2024, must file by January 13, 2025
• Reporting companies created/registered in the United States between December 3, 2024 and December 23, 2024 will have an additional 21 days from their original deadline.
• Reporting companies created/registered on or after January 1, 2025 must file within 30 days of receiving notice that their creation/registration is effective
• Reporting companies qualifying for disaster relief may have deadlines extended beyond January 13, 2025, and should abide by whichever deadline falls later

If you require support or guidance on filing with the CTA please contact our office for guidance by emailing us at [email protected] Alternative Fund, PLLC, boutique legal and business matter law firm alternative to private fund managers across hedge funds, private equity and venture capital firms. C-suite executive and law firm experienced lawyers sets us apart with enterprise-wide business know-how working with conventional to complex private fund manager firms and the spectrum of asset classes. • Contact • If you have any questions, please contact us: www.afundpllc.com +1 917-558-7794 [email protected]  Attorney Advertising— Alternative Fund, PLLC provides this information as a service for educational purposes only. It should not be construed or relied on as legal advice or to create a lawyer-client relationship. Readers should not act upon this information without seeking advice from professional advisers.