July 24, 2007
The Securities and Exchange Commission (SEC) has adopted new rule 206(4)-8 which prohibits fraudulent and deceptive practices by investment advisers (whether registered or unregistered) to many types of pooled investment vehicles. The SEC proposed this new antifraud rule as a direct result of the D.C. Circuit Courts decision in Goldstein v. Securities and Exchange Commission, which invalidated rule 203(b)(3)-1, the hedge fund adviser registration rule.