It is an issue that will not go away. Hedge funds are in need of regulation, Securities and Exchange Commission Chairman William Donaldson said again this week, promising to call for a vote in two weeks on whether hedge funds should be required to register as investment advisers, much in the manner that mutual funds must, the Associated Press reports.

Calling hedge funds "an accident waiting to happen," Donaldson said that on July 14, a new rule maintaining that all hedge funds register will be proposed. Already, the two other Republicans on the Commission, Paul Atkins and Cynthia Glassman, have said they are against the proposal. Several months of public comment, and then the possibility of adoption, will follow.

Ever since Canary Capital became engulfed in the still-developing scandal back in September, the Commission has been drawing up plays in the sand to figure out how to regulate the rapidly growing hedge fund industry.

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.

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