WSJ – Thousands of midsize and smaller hedge funds are about to fall under the sway of state overseers, and it isn’t clear the states are ready.
The new Dodd-Frank financial law seeks to tighten the leash on hedge-fund advisers, forcing all of them to register with regulators and undergo exams. But only hedge funds and other investment advisers managing more than $100 million will face oversight from the Securities and Exchange Commission. Those with smaller portfolios will be overseen by states.
