This report provides an examination of the regulatory framework that has been implemented in the U.S. since the global financial crisis. It also discusses the important role alternative investments like hedge funds play in this new, tightly-regulated, post-crisis economy.
While special attention will be given to the Dodd-Frank Act, it is important to note that other jurisdictions have similarly adopted robust regulatory regimes for alternative
investment and private fund managers, including the European Union’s (EU) adoption of revisions to the Markets in Financial Instruments Directive (MiFID), the Alternative
Investment Fund Managers Directive (AIFMD) and the European Market Infrastructure Regulation (EMIR).
Combined, these new laws and regulations reach every corner of our global economy. Large banks now face new risk retention rules for securitization, capital rules and new mortgage requirements. This has, in many cases, contracted bank lending. Alternative investments have started to fill that vacuum in the U.S., EU, and most recently, in Asia.
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