If you can avoid state registration through the use of exemptions then you may not have to take any exams to run your hedge fund. However, if you have to register your fund’s management company as an investment adviser, or if you have to register yourself as an investment advisor representative, then you will probably have to take a securities exam as a prerequisite to registration. Most states require that investment advisor representatives take either the Series 65 exam or both the Series 7 and Series 66 exams. Some states do have different exam requirements though, so it is important to research specific state requirements so that you aren’t surprised. Taking exams can delay the launch of your fund so it is best to get started studying early in the formation process. Many states do have exemptions for certain professional certifications including: CPA, ChFC, CFP, CFA, PFS, and CIC.
Related Content
FAQ
Can a hedge fund advertise on the Internet?
Historically, hedge funds have been prohibited from conducting any public offering by Rule 502(c) of Regulation D, which prohibited all forms of general solicitation and advertising. However, the JOBS Act…
FAQ
Does a hedge fund need to register with any regulator?
Hedge fund managers are often regulated by the state in which the hedge fund manager conducts business or by the SEC, depending on the manager’s assets under management (known as…
FAQ
What documents do I need to start a hedge fund?
Most hedge funds raise money through a private offering exemption under Regulation D of the Securities Act of 1933. Although Reg. D prohibits general advertising, fund managers do distribute certain…