Connecticut Proposing Tough Hedge Fund Rules

Connecticut lawmakers have proposed hedge fund regulations, including obtaining a license, annual audit, disclosure of fees and significant changes in management or investment strategy, as well as a higher minimum investment threshold of $2.5 million for individuals and $5 million for institutions.

Ten percent of the world’s hedge fund assets are concentrated in Connecticut, and the proposed regulations would reverse a tradition of a hands-off approach to the industry.

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