WEST PALM BEACH, FL (HEDGECO.NET) – The Securities and Exchange Commission is considering shifting some advisory oversight responsibilities to states, according to statement from a senior SECofficial. Although no decisions have been made so far, the agency expects an additional increase of 7% in the number of overall case load involving investment advisers overseen by the agency.
Paul Roye, SEC�s director for investment management division disclosed that the federally registered advisers will rise from the current 8% level to 15%. This increase will result from the passage of the hedge fund regulation law last Tuesday, in a divided 3-2 vote.
Roye told a group of layers that �at that level, we think we can handle it.” He added however, that if there is a sudden increase from that level, the SEC has the authority to pass on some of the work load to the states. States generally regulate smaller investment advisers managing assets under $25 million. Roye suggested that raising this level to $40 million may be the solution.
The new SEC law will be implemented in 2006; many of the opponents think the SEC does not have enough staff to fully carry out such unnecessary obligation. This work will also help to divert the agency�s attention from its traditional role of monitoring the huge US mutual fund establishment managing over $7.5 trillion in assets. Nearly 50% of the US based hedge fund managers have voluntary registered their business with the SEC.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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