New York (HedgeCo.net) – The Hedge Fund Association (HFA) today announced its opposition to the creation of any hedge fund self-regulatory organization. The feasibility and benefits of creating such an organization are currently under investigation by the Government Accountability Office (GAO) in accordance with Title IV, Section 414 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.
“In our discussions with the GAO, the Hedge Fund Association has let it be known that we stand in firm opposition to any potential hedge fund SRO,” David Friedland, President of the Hedge Fund Association and President of Magnum U.S. Investments, Inc. , said, “In light of the new registration requirements imposed by the Dodd-Frank Bill we believe that any SRO would prove to be entirely redundant and represent yet another regulatory cost that will suppress industry growth.”
“Hedge funds still represent the best outlet for entrepreneurship in the financial industry. By continuously raising the regulatory costs for a fund to operate, the government is making it harder and harder for smaller fund managers to stay in business,” Ron Geffner, Vice President of the Hedge Fund Association and Partner at Sadis and Goldberg, LLP., said, “It is the HFA’s mission to speak up for the hedge fund industry and for entrepreneurship in finance. This is why we simply cannot stay silent when such a potentially damaging provision is still under consideration by regulators.”
The Hedge Fund Association urges regulators to limit hedge fund regulation to the currently established registration requirements and abandon any consideration of an SRO. The HFA further calls on all Hedge Fund Industry participants to join them in their stand against what could potentially be another wave of costly and redundant regulation.
Editing by Alex Akesson
For HedgeCo.net
alex@hedgeco.net
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