I live in California and I am planning on starting a hedge fund in California. If I were to register the hedge fund in Delaware, or another state, would I still have to follow California rules and regulations or would I be completely exempt? If I registered the fund in Delaware would I have to follow they're rules for out of state hedge funds?
Out of State Hedge Fund
- Thread starter mph224
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rmorse
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This is a really bad way to get accurate information on this very important topic. You really should talk to an attorney. My expectation is that if you have a "place of business" in your state, that you have to register and "follow California rules and regulations," even if the company is domiciled in Delaware.
http://www.dbo.ca.gov/Licensees/Broker-Dealer_and_SEC_Investment_Advisers/Default.asp
http://www.dbo.ca.gov/Licensees/Broker-Dealer_and_SEC_Investment_Advisers/State_IA.asp
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=corp&group=25001-26000&file=25200-25209
25202. (a) An investment adviser shall not be subject to Section
25230 if (1) the investment adviser does not have a place of business
in this state and (2) during the preceding 12-month period has had
fewer than six clients who are residents of this state.
http://www.dbo.ca.gov/Licensees/Broker-Dealer_and_SEC_Investment_Advisers/Default.asp
http://www.dbo.ca.gov/Licensees/Broker-Dealer_and_SEC_Investment_Advisers/State_IA.asp
http://www.leginfo.ca.gov/cgi-bin/displaycode?section=corp&group=25001-26000&file=25200-25209
25202. (a) An investment adviser shall not be subject to Section
25230 if (1) the investment adviser does not have a place of business
in this state and (2) during the preceding 12-month period has had
fewer than six clients who are residents of this state.