It’s official. In a highly anticipated move, the Securities and Exchange Commission on Tuesday voted 3-2 in favor of requiring hedge fund managers to register as investment advisors with the agency.

The mandate, which will take effect in February 2006, will enable the Commission to collect more information on the rapidly growing investment product and give the SEC staff the ability to conduct examinations of the funds. The new requirement will force hedge funds of more than $25 million in assets to implement several new recordkeeping procedures, which opponents to the rule say will be costly and unnecessary.

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