One of the more common instances when a blue sky law may be required is when a hedge fund may need to make a blue sky filing. Generally, a hedge fund will have to make a blue sky filing in every state in which one of its investors lives, according to Bart Mallon of Mallon P.C. Within 15 days of the date of the investment into the hedge fund, the filing will need to be made.
Additionally, the investment manager must pay a fee between $75 and $300, although this fee could be in some circumstances. However, it should be noted that in New York, a blue sky filing will need to be made prior to an investment in a fund and the fee will be approximately $1,400, Mallon noted.
In order to make a blue sky filing, you must provide your attorney or compliance consultant with some information, such as the state in which the investor lives, the amount of the investment and all previous investments, the minimum investment amount and the management fee.
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