The Connecticut state Senate passed a bill to require more disclosure and transparency of hedge funds, private equity firms and venture capitalists. It would also require the investment firms to disclose conflicts of interest to investors.

The measure is now slated to go to the House, where it is possible that Republicans could resist the measure, citing the fact that so many hedge funds do business in the state.

“We all value transparency and fair disclosure,” said Sen. Bob Duff (D-Norwalk), who led the efforts on the bill and has pushed for regulation the past three years. “In the wake of the greatest breakdown in our financial industry since the Great Depression, these requirements are beneficial to the consumer without being onerous on the industry.”

However, Sen. Dan Debicella (R-Shelton), said the measure “threatens the economic cluster that we have in Connecticut, which could have far-reaching impact [and be] catastrophic for our budget” if it prompts hedge funds to move elsewhere.

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