# Regulatory convergence `kaal:entity:regulatory-convergence` **Status.** derived This node is assembled mechanically from the 8 claims that carry the concept tag `regulatory-convergence`. It is a roster of what the corpus says under this term. It is **not** an adjudicated definition: no single statement here has been ruled canonical, and no first-appearance call has been made. Read the claims and judge for yourself. ## Every claim under this term 8 claims across 3 works, 2010 to 2017. **2010** - [1664809-014](https://wulfkaal.github.io/claims/1664809-014) [mechanism/argued] -- Over time, extraterritorial US securities litigation may drive European jurisdictions to adopt portions of US law in order to discourage forum shopping, a form of legal assimilation. > portions of US law in order to discourage forum shopping. Richard W. Painter, Wulf A. Kaal, Extraterritorial Application of US Securities Law – Will the US Become the Default Jurisdiction for (2010). SSRN: https://ssrn.com/abstract=1664809 **2016** - [2715083-003](https://wulfkaal.github.io/claims/2715083-003) [mechanism/argued] -- Mandatory registration and increased disclosure for certain hedge fund advisers under the Dodd-Frank Act place hedge fund advisers under registration and reporting obligations similar to those long borne by mutual fund advisers. > The registration and increased disclosure requirements for certain hedge fund advisers under the Dodd-Frank Act subjects investment advisers to hedge funds to similar registration and reporting obligations as mutual fund advisers. Kaal, Confluence of Mutual and Private Funds (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2715083 - [2715083-004](https://wulfkaal.github.io/claims/2715083-004) [mechanism/argued] -- Lifting the advertising ban for hedge fund advisers under the JOBS Act, combined with FSOC treating mutual and hedge funds alike for SIFI designation, effectively assimilated the advertising requirements applicable to the two asset classes. > Similarly, the removal of advertising restrictions for hedge fund advisers under the JOBS Act and the equal treatment of mutual and hedge funds for FSOC's SIFI designation in effect assimilated the advertising requirements of mutual and hedge funds. Kaal, Confluence of Mutual and Private Funds (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2715083 - [2715083-013](https://wulfkaal.github.io/claims/2715083-013) [definitional/argued] *(failure mode)* -- The author stipulates the term nominal confluence: legal requirements that are formally identical for mutual and hedge fund managers but that operate in materially different ways in practice, so formal legal convergence overstates actual convergence. > The term "nominal confluence" as used herein describes otherwise identical legal requirements for mutual and hedge fund managers that can be materially different in practice. Kaal, Confluence of Mutual and Private Funds (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2715083 - [2715083-014](https://wulfkaal.github.io/claims/2715083-014) [failure/argued] *(failure mode)* -- 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. > 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 Kaal, Confluence of Mutual and Private Funds (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2715083 - [2715083-026](https://wulfkaal.github.io/claims/2715083-026) [failure/argued] *(failure mode)* -- FSOC's SIFI designation framework does not distinguish between mutual and hedge funds, even though evidence indicates designation would have disparate effects on the two asset classes. > While evidence exists that SIFI designation could have disparate affects on mutual and hedge funds (Stevens Letter (2015), the applicable regulatory framework does not distinguish between the two asset classes.44 Kaal, Confluence of Mutual and Private Funds (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2715083 - [2715083-029](https://wulfkaal.github.io/claims/2715083-029) [mechanism/argued] -- Merging the regulatory requirements of mutual funds with the formerly distinct rules for hedge funds creates incentives for private investment managers to launch retail alternative funds, which raises supply, then demand, and so feeds back into further confluence. > Merging the regulatory requirements applicable to mutual funds with the formerly more distinct rules applicable to hedge funds creates incentives for private investment managers to set up retail alternative funds. Kaal, Confluence of Mutual and Private Funds (2016). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2715083 **2017** - [2998097-033](https://wulfkaal.github.io/claims/2998097-033) [mechanism/argued] -- Confluence runs in both directions: mutual funds are becoming more like hedge funds as a matter of investment strategy, while hedge funds are becoming more like mutual funds as a matter of regulatory framework. > Several factors suggest that mutual funds are becoming more like hedge funds as a matter of investment strategy, while hedge funds are becoming more like mutual funds as a matter of the regulatory framework.169 The factors that perhaps best illustrate the Wulf A. Kaal, Private Investment Fund Regulation - Theory and Empirical Evidence from 1998 to 2016 (2017). SSRN: https://ssrn.com/abstract=2998097 ## Verify Every claim above resolves to a record carrying a verbatim source quote, the sha256 of the source PDF, and a preformatted citation. Nothing here asks to be taken on trust. curl -s https://wulfkaal.github.io/entities/regulatory-convergence.md | sha256sum **Canonical form.** This markdown file is the canonical hashed representation of this entity node. Its sha256 is the content hash.