# kaal:claim:1806252-018

**Claim.** A lack of regulatory guidance creates legal uncertainty, and legal uncertainty in turn generates transaction costs.

**Type.** mechanism  **Support.** argued

**Holds when.**

- regulator relies on no-action letters rather than rules

**Source quote.**

> A lack of guidance may create legal uncertainty,!4° and legal uncertainty generates transaction costs.

**From.** Kaal, *Hedge Fund Regulation Via Basel III* (2011), III.2.a History of Hedge Fund Registration in the United States, page 25

**Cite as.** Kaal, Hedge Fund Regulation Via Basel III (2011). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1806252

**Verify.** sha256 of source PDF `3343ebfe05a925c3d1a75625c4b351ccff515c50819a48d155804daacf01429d` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202011%20-%20Hedge%20Fund%20Regulation%20Via%20Basel%20III.pdf

**Topics.** law-and-legal-systems, economics, securities-law

**Keywords.** legal-uncertainty, transaction-costs, no-action-letters, sec

**Related claims.**

- restates: https://wulfkaal.github.io/claims/1664809-023
- generalizes: https://wulfkaal.github.io/claims/3067615-029
- generalizes: https://wulfkaal.github.io/claims/2150377-004

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