# kaal:claim:2715083-014

**Claim.** Identical rules diverge in practice because the two vehicle types are structured, operated, and run as businesses differently; the Investment Advisers Act applies to both, yet its obligations are far more onerous for mutual fund managers.

**Type.** failure  **Support.** argued

**Holds when.**

- Investment Advisers Act obligations
- registered mutual fund advisers compared with hedge fund advisers

**Source quote.**

> While the applicable statutes and regulations may appear to apply nominally to both mutual and hedge fund managers, the nature of how the investment vehicles are structured, operated, and how they conduct business can make their application materially different in practice

**From.** Kaal, *Confluence of Mutual and Private Funds* (2016), III. Persistent Differences and Nominal Confluence, page 9

**Cite as.** Kaal, Confluence of Mutual and Private Funds (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2715083

**Verify.** sha256 of source PDF `b5c92186260d4a8499a14f81ee24ace093b24e7740af3effcd1c526fa4fa221e` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202016%20-%20Confluence%20of%20Mutual%20and%20Private%20Funds.pdf

**Failure mode.** Formally identical rules with divergent practical burden  (family: compliance-cost-and-barrier-to-entry)

**Topics.** private-funds, compliance

**Keywords.** nominal-confluence, investment-advisers-act, compliance-burden, regulatory-convergence

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