WEST PALM BEACH, FL (HEDGECO.NET) – William Donaldson, the U.S. Securities and Exchange Commission chairman has once more defended his proposals to regulate the U.S. hedge fund industry, as the finalvote on the matter nears. The SEC will vote on Tuesday, October 26 in its final vote on the issue. Donaldson said, “I don’t anticipate substantive changes from the original proposal.�
Analysts predict the passage of the proposals on a similar 3-2 vote registered in the preliminary decision. The proposal would require hedge fund advisors to provide basic information on their activities to the SEC.
The new initiative also requires U.S. based hedge fund managers to open their books to spot SEC inspections. U.S. hedge funds managing less than $25 million in investor assets will generally be exempt from the new rule.
The proposal has raised skepticism from the hedge fund industry participants, trade groups and associations, who see such regulation as unnecessary. Last week the Managed Funds Association harshly criticized such move, the organization asked the SEC to find alternative measures to its current proposals.
Passage of the proposals does not mean an end to the debate. Opponents of the proposals will likely take the matter to court as a way of preventing the SEC from implementing such law.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
HedgeCo.Net is the most popular hedge fund database and community in the world. Membership on www.hedgeco.net is FREE and EASY. We also offer FREE LISTINGS for Hedge Funds!
Be sure to check out our sister sites. www.hedgefundlounge.com, www.hedgefundtools.com, and www.hedgefundemployment.com.
