Connecticut Hedge Fund Bill Revision
Here is a recent news article about the revision of a hedge fund bill in Connecticut. The bill states logical reasons for why the state backed down from regulating hedge funds more heavily but I believe it was because the state realized that these funds have been one of the bright spots for the state over the past 10 years.
State lawmakers have largely backed off efforts to tighten oversight over the hedge fund industry, which has come under intense scrutiny as a result of the financial crisis.For more information on hedge fund compliance and regulations please see our: Hedge Fund Regulation Corner.
By a 15-1 vote, members of the banks committee recently passed a bill that would require investment advisers to Connecticut hedge funds to disclose potential conflicts of interest that could impair their “duties and responsibilities.”
That requirement is much less intrusive than the committee’s original proposals, which would have required hedge funds to conduct an annual independent financial audit, disclose fees and significant changes in management and management strategy, and provide detailed portfolio information to in-state pension funds.
The policy shift comes after some argued that hedge fund oversight should come from the federal government rather than the state, and that such legislation would make Connecticut too unfriendly to the industry, which brings in tens of millions of dollars each year to the state’s coffers. source