SEC Postpones Meeting On Hedge Fund Rule

Dec 4 2006 | 12:36pm ET

It seems that the hedge fund community will have to wait until at least December 13 to see what the Securities and Exchange Commission will put under their Christmas tree.

Today, the Commission was scheduled to unveil its latest proposals to curb the number of investors in hedge funds by increasing the minimum investment requirement from $1 million to $2 million. The SEC was also expected to address a measure that aims to tighten the antifraud statute dealing with hedge funds.

However, the SEC reportedly dropped both items from its public hearing today, stating it needed more time to clarify its language on the proposals. Another public meeting has been scheduled for December 13 and the SEC told FINalternatives that it might add these two items to that session's agenda.

Pillsbury Winthrop Shaw Pittman attorney Jay Gould said the Commission wanted to bring up its hedge fund items today to coincide with the Securities Law Developments Conference sponsored by Investment Conference Institute, which is keynoted by Andrew Donohue, director of the Division of Investment Management at the SEC.

“My sense is they just weren’t comfortable and they probably thought it was better to get a good rule they could defend as opposed to coinciding with the ICI conference,” said Gould.

He also said that the Commission would have a more definitive proposal some time in January rather than this month. 

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