Hedge Funds 1 Year to Register

Hedge Funds 1 Year to Register

New Bill Proposes Giving Hedge Funds 1 Year to Register

The House Financial Services Committee has passed a bill that will give hedge funds a year to register with Securities and Exchange Commission.  The drafter of the proposal said that the grace period is necessary because both fund managers and the SEC will need time to prepare for the new work required for registering and examining the funds. 
Hedge-fund managers and private-equity managers would be given a one-year transitional period before being required to register and open up their books to periodic examinations by the Securities and Exchange Commission, according to a measure approved by the House Financial Services Committee on Tuesday. Rep. Susan Kosmas, D-Fla., the drafter of the measure, said a one-year transition period for registration is necessary because both the SEC and fund managers will need time to organize themselves. "The SEC will need time to prepare for the additional responsibilities that will come from the registration of potentially thousands of new managers," said Kosmas. She added that managers will need time to set up formal compliance programs, hire chief compliance officers, all of which is required by the legislation.   Source

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Tags: hedge funds registration, hedge funds register, hedge funds sec, securities and exchange commission, hedge fund bill, legislation, registering with the sec, compliance

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