California hedge funds need not fear a local registration requirement, for now.

The Golden State’s Department of Corporations last week said it is shelving plans to eliminate an exemption that allows most hedge funds and private equity firms to avoid registering with it. The department called the move, which it had proposed in October, “premature.”

The proposal was designed to, in effect, undo the decision in Goldstein v. Securities and Exchange Commission in California. That court ruling overturned an SEC rule requiring hedge fund managers to register with the regulator.