Deadline: Financial Statement Distribution for Funds of Hedge FundsJune 17th, 2013 | 8:54am
Posted by in Chief Compliance Officers | Hedge Fund Regulation | Private Equity Fund
Advisers to funds of funds who maintain custody of clients funds as defined in Investment Advisers Act Rule 206(4)-2, and whose fiscal year ends December 31, have a deadline looming. The deadline is June 30 (180 days of the end of their fiscal year) for distributing to fund investors audited financial statement prepared in accordance with GAAP to fund investors is approaching.
Normally, for advisers to other pooled investment vehicles, including limited partnerships and limited liability companies, the deadline for distributing annual audited financial statements is within 120 days of the end of their fiscal year. The SEC extended the deadline from 120 days to 180 days for funds of hedge funds because the earlier deadline made it hard for some fund of hedge funds to timely complete their fund audits prior to audits being completed for the underlying funds in which they invested.