Sat, Dec 16, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Hedge Fund Association "Speak Up" campaign hopes to keep strictest regulatory reporting burdens off small funds

Monday, November 09, 2009
Hedge Fund Association "Speak Up" Gains Traction on Capitol Hill Recent Proposed Legislation Increases Registration Requirement Assets Under Management from $30 Million to $150 Million Washington, DC - November 9, 2009 - The Hedge Fund Association, HFA, today announced progress on its "Speak Up" campaign, which seeks to ensure that regulation of the hedge fund industry meets government concerns without imposing over-reaching, broad measures that makes it costly for small funds to operate, and could impede industry growth and job creation.

HFA President, David Friedland, said that the HFA was not opposed to additional regulation and registration or reporting requirements. "The HFA is open to working with Congress to ensure that any regulation is cost effective and achieves objectives that both Congress and the industry need." Mr. Friedland further noted that all hedge funds are already subject to certain rules and regulations, including SEC anti-fraud provisions.

Mr. Friedland said, however, that "proposals from Congress to regulate funds with assets under management of over $30 million could result in smaller hedge funds, which form the vast majority of firms, to close their doors, causing a devastating impact on an industry already suffering from the effects of the financial downturn. This will result in a loss of jobs not only within those hedge fund firms, but also at the administrators, law firms, auditors, banks and brokers who rely so heavily on smaller/startup funds for much of their business."

The Hedge Fund Association's "Speak Up" campaign was launched with the aim of educating lawmakers and the media of the burden that new regulations would place on smaller hedge funds. "Some form of registration requirement and reporting requirement for firms with more than $250 million would seem to make the most sense" Mr. Friedland stated. "Typically firms with more than $250 million have a much larger internal staff than firms managing smaller funds. The larger firms can take on the burden of increased registration/reporting requirements and an internal compliance officer in a much more economical fashion."

As a result of this campaign, recent legislation being proposed by Congress would raise the registration requirement from assets under management of $30 million to $150 million.

"It's not as high as we would like, but we appreciate that lawmakers have listened to the concerns of the HFA and taken steps that would protect the small managers from the burden of excessive regulation."Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Mediobanca acquires majority stakes in Swiss hedge fund[more]

    Komfie Manalo, Opalesque Asia: Listed diversified banking group Mediobanca SpA said it has acquired a majority stake in Geneva-based hedge fund firm RAM Active Investments SA (RAM AI), an active and alternative asset manager offering a range of act

  2. Northleaf Capital Partners closes debut private credit fund on $670M[more]

    Bailey McCann, Opalesque New York: Northleaf Capital Partners has closed its debut private credit fund - Northleaf Private Credit I - on $670 million. The vehicle will invest in private credit transactions in Europe and North America, with a primary focus on lending to private equity-backed compa

  3. ...And Finally - The ongoing gun saga in the U.S.[more]

    From Newsoftheweird.com: As elder members of the First United Methodist Church in Tellico Plains, Tennessee, gathered on Nov. 16 to discuss the recent church shooting in Sutherland Springs, Texas, one of those present asked if anyone had brought a gun to church. One man spoke up and said he c

  4. Opalesque Exclusive: Credit Suisse Asset Management's NEXT Investors leads $6M Series A round for LUX Technology and Services[more]

    Bailey McCann, Opalesque New York: Credit Suisse Asset Management's NEXT Investors has led a $6 million Series A funding round for LUX Technology and Services, a business and technology solutions provider for the alternative assets industry. The investment will be used to fuel growth of Trans

  5. eVestment: hedge funds extend winning streak[more]

    Bailey McCann, Opalesque New York: Hedge funds marked their 13th consecutive month of positive returns in November with +0.47% average returns for the month, according to the latest Hedge Fund Performance Report from eVestment. Activists, long/short and quant equity strategies are producing