In a speech at the Investment Company Institute’s Board of Governors Winter Meeting on January 26, Commissioner Luis Aguilar of the Securities and Exchange Commission repeated his view that Congress should “close the glaring loopholes in securities regulation by unequivocally stating that the SEC has jurisdiction and the ability to regulate hedge fund advisers and derivatives...” In a speech earlier in January this year to the North American Securities Administrators Association’s Winter Enforcement Conference, he explained in more detail his view of the need for congressional action to authorize SEC oversight of hedge funds and funds of funds as well as their advisers and financial derivatives. He is joined by SEC Commissioner Elisse Walter, who expressed support for hedge fund registration in a recent interview with Reuters, and new SEC Chairman Mary Schapiro, who stated in her Senate confirmation hearings that she believes “all systemically important financial institutions need to be regulated” and that she “would specifically endorse the registration of hedge funds.”  

Senators Charles Grassley and Carl Levin introduced the Hedge Fund Transparency Act as a bill in the Senate on January 29, which would require a form of SEC registration for privately offered funds with assets of $50 millionor more. The bill was referred to the Senate Committee on Banking, Housing and Urban Affairs, as reported in the January 30, 2009, edition of Corporate and Financial Weekly Digest.