What is the legal framework for setting up a hedge fund?

In Massachusetts, the legal framework for setting up a hedge fund is established by the Alternative Investment Law of the state. This law provides the legal framework for the formation and operation of a hedge fund in the state. To start a hedge fund, a business must first register with the Massachusetts Securities Division. This must be done through the filing of certain documents that provide information about the types of securities the hedge fund will be offering and the fees and expenses associated with the fund. Once the registration is completed, a business will need to obtain a charter from the Massachusetts banking authority. This charter is necessary in order to operate as an investment company in the state and is necessary for setting up a hedge fund. Once the charter is obtained, the business must also register with the Securities and Exchange Commission (SEC) as a hedge fund. This is necessary in order for the hedge fund to be able to solicit investors. The SEC has its own set of requirements that must be met in order to become an officially recognized hedge fund. Finally, a business must adhere to all other applicable laws and regulations regarding the formation and operation of a hedge fund in Massachusetts. This includes tax laws, accounting laws, securities laws, and other federal and state regulations. By following these legal requirements, a business can successfully set up a hedge fund in Massachusetts and begin offering investments to the public.

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What is the legal framework for setting up a hedge fund?

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