The HFA Announces Opposition To 'Costly and Redundant' Regulation

Nov 5 2010 | 8:32am ET

The Hedge Fund Association today announced its opposition to the creation of a hedge fund self-regulatory organization. The Government Accountability Office  is currently investigating the feasibility and benefits of creating such an organization in accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act.

“In our discussions with the GAO, the Hedge Fund Association has let it be known that we stand in firm opposition to any potential hedge fund SRO,” said David Friedland president of the Hedge Fund Association and president of Magnum U.S. Investments, Inc.  “In light of the new registration requirements imposed by the Dodd-Frank Bill we believe that any SRO would prove to be entirely redundant and represent yet another regulatory cost that will suppress industry growth.”

In a statement released today, the HFA is urging hedge fund industry participants to join forces to oppose what could be another wave of what they say is costly and redundant regulation.

“Hedge funds still represent the best outlet for entrepreneurship in the financial industry.  By continuously raising the regulatory costs for a fund to operate, the government is making it harder and harder for smaller fund managers to stay in business,” said Ron Geffner, vice president of the Hedge Fund Association and a partner at law firm Sadis and Goldberg.  “It is the HFA’s mission to speak up for the hedge fund industry and for entrepreneurship in finance.  This is why we simply cannot stay silent when such a potentially damaging provision is still under consideration by regulators.” 


In Depth

'Smart Beta' Funds In Regulators' Sights, Hedgies May Be Next

Mar 26 2015 | 11:11am ET

Funds that mimic strategies used by active managers for a fraction of the cost could...

Lifestyle

Study: Both Marriage and Divorce Lead to Negative Hedge Fund Performance

Mar 25 2015 | 6:51pm ET

Trouble at home leads to trouble in the market for fund managers, according to researchers...

Guest Contributor

Concerned About Your HFT Exposure? Hedge It!

Mar 26 2015 | 1:06pm ET

High-frequency trading has been a persistent storyline for several years. The trading...

 

Sponsored Content

    Mar 9 2015 | 6:35am ET

    Kelly RodriquesKelly RodriquesAs more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…

Editor's Note