WEST PALM BEACH, FL (HEDGECO.NET) – William Donaldson, the chairman of the US Securities and Exchange Commission told attendees at the annual �SEC Speaks� seminar that his staff is reviewing the newproposed hedge fund laws before releasing such proposals to the general public for comments. The SEC boss said hedge fund regulations are almost certain but the degree of how restrictive such lawsmay be remains debatable.
Donaldson said �Even though these hedge fund advisors manage substantial amounts of money for a large number of clients, they escape registration as investment advisers by reaching their clients indirectly though pooled vehicles. The commission needs a reliable way of collecting information on them,” he added.
The new regulations would be debated according to Donaldson, and the public would be invited to participate in the debates before a five-member commission finally votes on the proposals. According to published reports, two members of the commission, Paul Atkins, and Cynthia Glassman have concerns about some aspects of the new proposed laws regarding the need, effectiveness, and enforceability of the proposed regulations.
According to Bloomberg news, Republican SEC Commissioner Paul Atkins believes a U.S. Securities and Exchange Commission plan to regulate the $800 billion hedge fund industry is an �overreaction� to trading scandals in mutual funds.
Atkins said, �My principal concern is whether we need to dedicate the SEC�s limited resources to protect a small number of investors that presumably have the wherewithal to look out for themselves.� According to Atkins, such resources should instead be used to address mutual funds that have a much larger appeal to US investors. This statement is a direct contradiction of the SEC�s official position on the matter.
No specific deadline was established by Donaldson for the release of the new proposals, but his comments lend credence to the point that such proposals will be soon announced.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
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