6.18.2009 SEC Commissioner Luis Aguilar spoke last week in New York before the Spring 2009 Hedgeworld Fund Services Conference on “Hedge Fund Regulation on the Horizon—Don’t Shoot the Messenger.” First, he spoke on the current state of affairs regarding the hedge fund industry. Next, he described the calls for regulation of the industry. He concluded by discussing the key considerations that need to be assessed as hedge fund regulation moves forward.
He stated that hedge fund advisers with more than $25 million in assets should register with the SEC. He suggested a tiered approach to registration, based on a fund’s potential to affect the market, would make sense. At the lowest tier would be small funds. These funds could be subject to a simple recordkeeping requirement as to positions and transactions, kept in a standardized format, to permit the SEC to efficiently oversee their activities. As funds grow in size, different standards may be appropriate. For funds that could significantly affect the market, it may be appropriate to require more than recordkeeping.
Click http://www.sec.gov/news/speech/2009/spch061809laa.htm to access Commissioner Aguilar’s speech.