Hedge Fund, Private Equity Registration Bill Introduced

Oct 2 2009 | 2:33am ET

It’s been a foregone conclusion for some time now, but legislation requiring hedge fund managers and private equity firms to register with U.S. regulators has finally been introduced in the U.S. House of Representatives.

The bill, sponsored by Rep. Paul Kanjorski (D-Pa.), chairman of the House Financial Services Committee’s capital markets subcommittee, is based on legislation offered earlier this year by the White House, but specifically exempts venture capital firms. Hedge funds and p.e. firms are not so lucky: They would be required to register with the Securities and Exchange Commission and submit to period examinations. The bill would also impose new recordkeeping and disclosure requirements.

“Many financial firms skirt government oversight and get away like bandits, but now the advisers to hedge funds, private equity firms and other private pools of capital would become subject to more scrutiny by the SEC,” Kanjorski said.

Kanjorski’s bill would also double the SEC’s funding over the next five years, as well as giving it new enforcement powers. It would set up a whistleblower rewards program, and give new powers to the Public Company Accounting Oversight Board.

Kanjorski’s proposal comes after Rep. Barney Frank (D-Mass.), chairman of the Financial Services Committee, announced his own plans to introduce a hedge fund registration bill. Frank also said that venture-capital funds should be exempted.

“We are supportive of the role of venture capital, we are working in consultation with venture capital and I don’t think there will be anything in there for venture capital firms,” Frank said.


In Depth

Fitch Says Alternative Asset Managers 'Stable' Despite Dry Powder

Nov 20 2014 | 9:30am ET

Ratings agency Fitch says the outlook for seven publicly traded alternative asset...

Lifestyle

Cohen Buys $101 Million Sculpture

Nov 12 2014 | 9:17am ET

Steven Cohen was the sole bidder for a rare Alberto Giacometti sculpture at Sotheby...

Guest Contributor

Why The Big Money Is Going To Europe

Nov 14 2014 | 6:03am ET

Peer-to-peer lending was invented with the individual investor in mind. But despite...

 

Sponsored Content

    For Hedge Funds, Mastering Data Is Key To Success

    Nov 4 2014 | 9:45am ET

    Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

November 2014 Cover

Building a better market

Reg NMS created a huge bifurcation in equity markets and while much of what has followed has been positive, in terms of lower fees and greater liquidity, many traders would like to see the market come...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.