Subject: File No. DF Title IV - Exemptions
From: hedge manager
Affiliation: fund manager

October 23, 2010

We are a US fund manager who will be required to register with you by July next year. A number of our peer firms in the UK and HK tell me they will avoid the new regulation by forming luxembourg or cayman funds for US investors and get out of your requirements even if they have lots of US investors and come over here to hold meetings and solicit investors. How can this be especially when I am now being told that to sell my funds in Europe in several years I will be covered by full EU regulation. Are you paying attention to all of this? There should be some level of overall fairness to this process in today's global economy. Why do I get two new mandates when they find a loophole? I thought this new act required them to be licensed here.