Hedge Fund Reader : SEC Reportedly Gives Time Extension to Hedge funds

Comments

December 18, 2005

SEC Reportedly Gives Time Extension to Hedge funds

The U.S. Securities and Exchange Commission is seemingly giving hedge funds a little more time to prepare for a new rule that will allow the SEC to monitor the $1 trillion hedge fund industry more closely. It is being reported that the agency has allowed hedge funds to send their paperwork by early 2006. Thus, some hedge funds might be still able to meet the deadline for the regulation that will take effect on February 1st 2006. Under the new rule, about 1,900 of the loosely regulated industry's 8,000 funds will have to register with the Securities and Exchange Commission and allow SEC’s inspectors to periodically review their books. Reuters reports:

However, the SEC, in a 78-page letter sent to the American Bar Association, has reportedly outlined that if an adviser files its initial application for registration no later than January 9 2006, "the staff will endeavor to act upon the application by February 1, 2006." This letter has supposedly given a sigh of relief to many a hedge fund houses and investors, as it would allow them to get their documents in by the 9th of January 2006.

--
Did you enjoy this post?

December 18, 2005 in Regulation | Permalink