# kaal:claim:2389416-029

**Claim.** The Dodd-Frank Act registration threshold creates incentives strong enough that some advisers opt out of registration and disclosure by strategically changing their AUM size to stay below $150 million.

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

**Holds when.**

- advisers with AUM floating around the $150 million threshold

**Source quote.**

> It is possible that the enactment of the Dodd-Frank Act introduces incentives that are powerful enough to cause some hedge fund advisers to opt out of Dodd-Frank Act registration and disclosure through a strategic change of AUM size.

**From.** Wulf A. Kaal, Barbara Luppi, Sandra Paterlini, *Did the Dodd-Frank Act Impact Hedge Fund Performance* (2014), 5.2.2. Strategic Subsample

**Cite as.** Wulf A. Kaal, Barbara Luppi, Sandra Paterlini, Did the Dodd-Frank Act Impact Hedge Fund Performance (2014). SSRN: https://ssrn.com/abstract=2389416

**Verify.** sha256 of source PDF `0e1c4615b104821577498d9655de43b9c5c3e985bb0215f56c038b8232be65c3` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20et%20al.%20-%202014%20-%20Did%20the%20Dodd-Frank%20Act%20Impact%20Hedge%20Fund%20Performance.pdf

**Failure mode.** Threshold gaming to avoid registration  (family: regulatory-arbitrage)

**Topics.** regulatory-failure, risk-and-incentives

**Keywords.** regulatory-avoidance, threshold-effects, strategic-behavior, incentives

**Related claims.**

- supports: https://wulfkaal.github.io/claims/2150377-028
- supports: https://wulfkaal.github.io/claims/2150377-008

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.