New York (HedgeCo.net) – The House Financial Services Committee yesterday said that hedge-fund managers and private-equity managers would be given a one-year transitional period before being required to register with the SEC and be subject to disclosure requirements to investors and creditors. They also would have to maintain records and potentially open their books to federal inspection.
The bill received broad bipartisan support in a 67-1 vote. Rep. Susan Kosmas, who drafted the measure, said a one-year transition period for registration is necessary because both the SEC and fund managers will need time to organize themselves, news source MarketWatch said.
“The SEC will need time to prepare for the additional responsibilities that will come from the registration of potentially thousands of new managers,” said Kosmas. She added that managers will need time to set up formal compliance programs, hire chief compliance officers, all of which is required by the legislation.
Alex Akesson
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