The SEC should be given explicit authority to regulate hedge funds as investment advisors, said the North American Securities Administrators Association Inc. (NASAA). The recommendation is part of NASAA's Pro-Investor Legislative Agenda for the 111th Congress, released Friday, Jan. 29. The NASAA agenda also calls for granting the SEC authority to require hedge funds to disclose positions, leverage amounts, and identities of counterparties, as well as increasing funding to the SEC "to provide meaningful analysis of this data and to exercise proper oversight over hedge funds." This marks the first time that state regulators have called for Congress to empower the SEC to regulate hedge funds.
Full Recommendations: North American Securities Administrators Association, Pro-Investor Legislative Agenda for 111th Congress (Jan. 29, 2009)
Full Story: NASAA Calls for Hedge Fund Regulation, InvestmentNews (Jan. 29, 2009)