Connecticut lawmakers in the House of Representatives are expected to pass a hedge fund transparency bill, possibly ending the states days as a hedge fund haven, The Wall Street Journal reports.
The bill would require hedge funds that have not voluntarily registered with the Securities and Exchange Commission to reveal any conflicts of interest to shareholders, which theywould have to do if they were registered. They would also have to be licensed in the state, undergo audits and disclose fees and any changes in strategy.
Leaders in the legislature say they have enough votes to pass the measure.
Ryan Barry, chairman of the joint banks committee and a member of the House, had harsh words for hedge funds: Whether its a pest-control business or a hedge fund, I wouldnt want any company in Connecticut if theyre afraid of disclosing the truth. If they dont want to comply with that, then leave. We dont want you here.
The legislature decided to pass the measure since the federal government has failed to do so, Barry said.