Ads
January 30, 2006
Hedge funds to see better regulation
With the increasing popularity of hedge funds, there has also been an increase in the number of fraud cases that have are being reported. A large number of hedge fund managers have been charged for defrauding investors.
Keeping this in view, the SEC has now introduced a new rule. Under this, most hedge fund managers would need to register with the agency. As a result, the SEC examiners would be able to inspect and overlook the functioning of most hedge funds. Further the managers would also have to abide by an array of regulations including accounting and disclosure requirements.
The rule essentially applies only to those funds that allow investors to redeem their stakes within two years of purchasing them. With this move, this largely unregulated sector would also see some regulatory action.
--
Did you enjoy this post?
Comments
Post a comment
« State-employee pension fund, NJ, to invest in hedge funds | Main | European Union funds request to invest in hedge fund indices rejected »
Syndicate
Comments