A Connecticut bill that would have imposed transparency and licensing requirements on hedge funds failed to be signed into law Wednesday when the House of Representatives ran out of time to vote on the measure.
The legislatures special sessions will be now focus on the state budget and, therefore, will not be able to address the measure. Well have to bring it up again next year, Ryan Barry, co-chairman of the joint banks committee and the main supporter of the bill, told Dow Jones.
Barry, a House Democrat, maintains that he had enough votes in the House to pass the measure but that representatives from districts where there are many hedge funds ensured that the legislative body would run out of time before bringing the bill to a vote.
The bill would have required hedge funds that had not voluntarily registered with the Securities and Exchange Commission to alert investors of any conflicts of interest, to be licensed in the state and to undergo annual audits.