Since the SEC voted to require many U.S. hedge fund managers to register as investment advisors, hedge fund managers have been looking to sort out what steps they need to take to adhere to the new regulation. To help them, Lipper of New York has just published "It's the Rule: The New SEC Advisor Regulation for Hedge Funds," a guide to what managers need to know in advance of the Feb. 1, 2006 deadline for registration.

According to Lipper, the hard part is complying with the recordkeeping requirements that are now part of the registered investment advisor package. The recordkeeping rule requires that advisors maintain copies of their policies and procedures along with any revisions. They must also conduct an annual review of these policies and maintain all records documenting this review. And they must retain all of these records for five years.

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