Posts Tagged ‘hedge funds’
The US Securities and Exchange Commission’s (SEC) new authority under the Dodd-Frank Act (DFA) is to inspect newly registered hedge fund managers.
This heightened level of regulation takes places in a number of different areas of the financial services industry to promote overall financial stability in the United States by addressing perceived regulatory deficiencies in the US regulatory framework.
With the passing of the DFA, the SEC requires hedge fund advisers to register with the SEC with $100 Million or more in assets as well as the SEC requires that private fund advisers file systematic risk information.
Recently, House Financial Services Committee Chairman Jeb Hensarling and New Jersey Republican Scott Garrett, who chairs the capital markets subcommittee, raised their concerns about the regulatory regime for private equity funds in a letter sent to the SEC Chair Mary Jo White. “For these advisers, the SEC examination process has proven to be burdensome, costly, inefficient and inflexible,” Hensarling and Garrett wrote. “Subjecting this set of advisers to the examination process does not appreciably further the goals of investor protection or financial stability.”
I personally side with Hensarling and Garrett and believe that the SEC should better prioritize its resources by focusing on advisers who cater to less sophisticated, mom and pop investors.
About time. The Securities and Exchange Commission (SEC) voted today in a 4 to 1 decision in favor of lifting the advertising ban for hedge funds. A move that was required by the JOBS Act passed last year. The bill was “designed” to decrease funding hurdles for small businesses in the wake of a growing use of crowd-funding. Hedge funds are restricted to investors that have a net worth of at least 1 million (excluding primary residence) or annual salary of 200,000 in previous two years–about 7.8% of Americans.
Have fun all you hedge funds out there, we expect to see some funny Superbowl commercials….
Thanks to Huffington Post for the article: Hedge Fund Ad Ban Lifted