The current regulation that allows hedge funds and other advisers with fewer than 15 clients not to register with the Securities and Exchange Commission is a “gap [that] doesn’t make sense,” said Andrew Donohue, director of the division of investment management, speaking before the Mutual Fund Directors Forum.

Donohue’s comments echoed sentiments of SEC Chairman Mary Schapiro, who said in March that the SEC may ask Congress for legislation requiring hedge funds to register with the agency.

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