How To Set Up a Hedge Fund

How To Set Up a Hedge Fund
Click here for Series 65 exam description and study materials

Hedge Fund and Limited Partnership Services

Hedge Fund – Limited Partnerships have unique compliance and organizational requirements. Clients are helped in identifying individual needs, and then provided customized services tailored to meet those needs. These customized services may include:

Start-up Requirements:

  • Identify federal and state Investment Advisor registration requirements of General Partner.
  • Prepare Form ADV; ensure consistency with offering material. Prepare Investment Advisor registration materials for all states, as required. Provide start-up files for registration documents.
  • Identify Blue Sky filing requirements of the investment vehicle. Prepare filings, or work with attorney, to ensure all filings are completed in a timely manner.
  • If appropriate, provide both ERISA and non-ERISA advisory agreements for separately manage accounts.
  • Assist professionals to schedule and prepare for required FINRA examinations, if required.
  • Train personnel in all aspects of day-to-day operations and the trading cycle — including placing trades, tracking settlements, reconciling broker statements, record keeping, and portfolio accounting. Establish effective filing systems for regulatory compliance in all areas.
  • Develop personal security transaction policy and insider trading policy based on existing trading practices; provide required regulatory documentation.
  • Review partnership agreement and offering material for compliance with investment advisor regulations and reasonable operational requirements.
  • Work with attorney to ensure that all partnership and corporate filings (if appropriate) are submitted to regulatory agencies in a timely manner.

Ongoing Support:

  • Respond to most compliance and organizational questions surrounding the investment advisory and hedge fund environments.
  • Provide compliance calendar and timely reminders of regulatory filing requirements; identify regulatory filing requirements for partnership and investment advisor in additional states; complete filings or provide assistance in preparation of filings.
  • Provide expertise in day-to-day portfolio accounting and trading issues; work with brokers (including prime broker) to establish accounts and good working relationships; work with bookkeepers and accountants to facilitate a smooth audit.
  • Review ongoing compliance with investment advisory and other regulatory requirements; review executed subscription agreements as received for compliance with offering material and regulations.

Refer to our Resources page for helpful links.


Generally, the fund managers must register as Registered Investment Advisors — requiring a Series 65 exam or a combination of the Series 7 and 66 exams.

If the fund is going to trade commodity futures contracts, the Series 3 exam is often required.

Passing the exam is not the only step; you must complete the entire registration process and pass all exams before any solicitation begins.

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