Reports that U.S. Sens. Carl Levin's and Charles Grassley's new bill on hedge fund regulation will force funds to publicize the names of clients are untrue, the senators said.

"Contrary to some press reports, the Grassley-Levin bill to regulate hedge funds does not require the disclosure of hedge fund clients who merely invest in the fund," they said. "Instead, the bill requires disclosure of a hedge fund's beneficial owners who profit from the fees generated in operating the fund. Such ownership information has already been requested and provided on a routine basis for years in the voluntary hedge fund registrations filed with the Securities and Exchange Commission."

The Hedge Fund Transparency Act would require private equity firms with more than $50 million in assets under management to register with the SEC.

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