As the deadline for the Security and Exchange Commission's new hedge fund registration rule quickly approaches, many firms are scrambling to determine whether it might be better to take advantage of its loopholes and skirt the costly disclosure document altogether.

"People are waiting to the last minute," said Janaya Moscony, president of SEC Compliance Consultants in Philadelphia, which is helping hedge funds register. "It doesn't look like I'll be getting much sleep in the coming weeks."

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