December 15, 2005

Hedge Funds Favored in SEC case

According to a US Appeals Court judge, the US Securities and Exchange Commission's plan to force hedge fund advisers to register with the agency does not hold good. Judge Harry Edwards, one of three judges involved in the lawsuit against the regulations, told SEC solicitor Jacob Stillman the agency had stretched the definition of "clients" to make the registration proposal work. afr.com reports:

While hedge funds have usually viewed themselves as the advisers' clients, the SEC wants the definition to include the funds' investors as well. That would require advisers to register with the agency, giving it more power to fight fraud in the $US1.1trillion ($1.5trillion) industry.

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December 15, 2005 in Regulation | Permalink




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