The Hedge Fund Transparency Act (HFTA) was intended to require the disclosure of the parties that benefit from the fees generated from operating a fund, not the disclosure of outside clients, said Senators Charles Grassley (R-Ia.) and Carl Levin (D-Mi.) in a joint statement Thursday, Feb. 5. Grassley and Levin introduced the HFTA to the Senate Jan. 29 (see here).

The HFTA as written would require funds to disclose "the name and current address of...each natural person who is a beneficial owner" of the fund. The information would "be made available by the [SEC] to the public at no cost and in an electronic, searchable format." The joint statement is directed at the interpretation of "beneficial owner," which has been largely perceived to include clients investing as limited partners.

Full Story: Senators Say Names Aren't the Aim, Wall Street Journal (Feb. 6, 2009)