Most hedge funds will not be deemed systemically important
financial institutions (Sifis) subject to capital and liquidity
requirements if the Financial Stability Oversight Counsel's
(FSOC) October 11 proposal is enacted. "It's probably going to
be good for hedge funds. In some ways it's useful because the
first test to determine if a company is a Sifi is if it has $50
billion in assets," Paul Hastings partner Lawrence Kaplan said.
Non-bank financial institutions with less than $50 billion in
assets do not move onto the second test - which includes
alternatives outlined below -...