After coming under harsh scrutiny in recent months, most recently via the Canary Capital Partners scandal, the hedge fund industry was handed what many feel is a victory Monday. After analyzing the Securities and Exchange Commission’s proposed rule changes, some industry insiders said they don’t think they will greatly alter companies’ day-to-day operations, The Wall Street Journal reports.

The SEC said that most hedge-fund managers will be required to register as investment advisers, opening the door to auditing and inspection. The commission hopes that this move will help snuff out funds operating improperly.

Currently, about 25% of the managers are registered with the SEC. Funds that manage less than $25 billion will be under state jurisdiction, however, and will not be required to register with the SEC.

From an operations standpoint, however, the SEC principally laid off the industry – a move that many point to as a thumbs up for the overall honesty and integrity of the business.

"There were concerns there would be restrictions on the types of investments hedge funds engage in," Paul Roth of the law firm Schulte Roth & Zabel told The Wall Street Journal.

However, an additional change moves the threshold of who can invest in a hedge fund from those with $200,000 in annual income or $1 million in net worth to individuals with either $1.5 million in net worth or $750,000 invested with the adviser.

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