June 30, 2006

US Congress Considers Hedge Fund Regulation

The Security and Exchange Commission is still fighting its war to regulate hedge fund despite the fact that it lost a battle last week. Now it has received the support of some members of the Congress. Three Congressmen introduced a bill in the House that would authorize the SEC to require registration of hedge funds as investment advisers. The bill would serve as an amendment to the Investment Advisors Act of 1940. It would also re-establish the authority of the SEC to regulate hedge funds. The three Congressmen who introduced the bill were Rep. Barney Frank, Rep. Michael Capuano and Rep. Paul Kanjorski.

According to The Street -

With the SEC registration rule overturned by the court, the question remains: Will hedge funds remain largely unregulated as they are now? Will Congress or the states step in? The bill is unlikely to be embraced by the hedge fund community. What is clear is that efforts to regulate hedge funds are far from dead, as reported here?

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