Tuesday, 24 May 2016
Last updated 7 hours ago
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.”