William Galvin, secretary of the Commonwealth of Massachusetts, would like federal regulators to regulate hedge funds and to preclude retail investors from participating in hedge funds or registered hedge funds-of-funds, Reuters reports.

"We need to make sure that hedge funds are not being pitched to retail investors. I think hedge funds should be regulated," Galvin told Reuters. Just last week, Galvin’s office sued three hedge funds for trying to attract retail investors.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.