The Securities and Exchange Commission is reportedly considering shifting some of its responsibilities to the states, as the agency expects a surge of up to 15% in the number of investment advisors it oversees once the new hedge fund registration requirements become effective in February 2006.

The SEC voted 3-2 last month in favor of requiring hedge funds of more than $25 million in assets to register with the Commission in order to allow it to collect more information on the growing investment product as well as have examination authority in that industry. One of the arguments against regulation of the product is that it would stretch the resources of an already overextended SEC staff.

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.