The financial reform legislation currently before the U.S. Congress targets hedge fund managers, but in doing so would strip away an exemption from U.S. investment adviser registration rules that is important to real estate fund managers as well. If real estate-focused fund managers were required to become registered investment advisers under the U.S. Investment Advisers Act of 1940 (the “Advisers Act”), they would find that compliance with the Advisers Act can impose significant burdens and expense.

Click here to view memo, U.S. Legislative Update: Why Real Estate Fund Managers Should Monitor Congressional Bills Targeted at Hedge Funds