Legislation Pushes For Hedge Fund Advisors To Register With SEC

uing its push to establish new rules for the financial system, the Obama administration has delivered proposed [link=http://www.treas.gov/press/releases/reports/title%20iv%20reg%20advisers%20priv%20funds%207%2015%2009%20fnl.pdf ][u]legislation[/u][/link] to Capitol Hill to require all advisers to hedge funds and other private pools of capital, including private equity and venture capital funds, to register with the Securities and Exchange Commission (SEC). Although some advisers to hedge funds and other private investment funds are required to register with the Commodity Futures Trading Commission, and some register voluntarily with the SEC, current law generally does not require private fund advisers to register with any federal financial regulator. The proposed legislation would, for the first time, require that all investment advisers with more than $30 million of assets under management to register with the SEC. The administration says its legislation would help protect investors from fraud and abuse, provide increased transparency, and provide the information necessary to assess whether risks in the aggregate or risks in any particular fund pose a threat to the nation's financial stability. The legislation would also require that all investment funds advised by an SEC-registered investment adviser be subject to record-keeping requirements; requirements with respect to disclosures to investors, creditors and counterparties; and regulatory reporting requirements. SOURCE: T


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