Hedge Fund Registration Rules
Almost everyone I speak to who works with hedge funds expect some type of government regulation in 2009/2010 within specific asset classes where hedge funds invest or directly to hedge fund managers. While I believe the latter will be limited in nature, I do believe a registration requirement will be attempted a second time as more frauds seem to become exposed each month. Here is an article excerpt on this topic:
President-elect Barack Obama’s choice to head the Securities and Exchange Commission said that she might reinstitute the agency’s hedge fund registration rule.
Mary Schapiro told the Senate Banking Committee at her nomination hearing yesterday that she would consider resurrecting the registration rule, which was thrown out by a federal court in 2006. Requiring hedge funds to show their books to regulators “will give us a better handle on who is out there and what they are doing,” Schapiro said.
Schapiro, who served as an SEC commissioner from 1988 until 1994 and as head of the Commodity Futures Trading Commission from 1994 until 1996, laid out several other goals she has, pending her confirmation by the Senate. She proposed a semi-independent, government-backed credit rating agency and a central clearinghouse for credit default swaps. She suggested that the former might be funded by transaction fees collected by stock exchanges as part of their listing requirement. source
Read more about related issues within our Hedge Fund Regulation & Compliance Guide.