Hedge-fund advisors are withdrawing from registration with the Securities and Exchange Commission in droves, adding to the effect of a June court decision that tossed out an SEC rule requiring registration, according to The Wall Street Journal.Around 275 hedge-fund advisors have withdrawn from registration with the SEC since than appeals court said the rule was arbitrary and couldn’t stand, according to the SEC statistics gathered as of Dec. 7. The number is up sharply from 106 that had withdrawn as of Sept. 14.
Federal regulators are taking small steps to oversee the lightly regulated investment vehicles. Wednesday the SEC proposed raising to $2.5 million the amount in financial investments an individual must have before investing in hedge funds. Additionally, the SEC proposed barring hedge-fund advisors from defrauding investors as the agency seeks to regain powers called into question by the appeals court’s decision.
Of the hedge fund managers who registered with the SEC in anticipation of the rule, 1,067 remain registered and haven’t filed to withdraw.
The staff of Money Management Executive ("MME") has prepared these capsule summaries based on reports published by the news sources to which they are attributed. Those news sources are not associated with MME, and have not prepared, sponsored, endorsed, or approved these summaries.