Editor’s Note: It looks like they are setting the minimum amount to start the extra reglatory filings at any hedge funds with atleast $30 million dollars of assets. We will need to monitor this closely to see what types of effects it will have on the hedge fund industry. I do like the required for reporting off-balance sheet transactions, I see no reason for those except to hide risk and liability from the public. As a follow-up point, if you make the arguement that the off-balance sheet transaction is adding value then why not have it on the balance-sheet?
News (Reuters):
The Obama administration on Wednesday will send Congress legislation demanding that hedge fund managers submit to new registration and disclosure rules to boost transparency and limit any risks they pose to the financial system, a senior U.S. Treasury official said.
“Later today, we will send legislative language to the Hill that requires registration of all hedge funds and other private pools of capital over a minimum threshold in size,” Treasury assistant secretary Michael Barr said in remarks to a business group in Washington.
The bill, one of many Obama administration proposals to revamp financial regulation, would require all investment advisers with more than $30 million under management to register with the SEC and disclose key information about their funds to regulators and investors.
Barr, previewing the legislative language in his speech, said these disclosures would include asset size, borrowings and off-balance-sheet exposures, among other information.
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