Hedge fund rule's fallout seen likely to persist; Experts see good reasons to stay registered.(News)

Investment News, September, 2006

Byline: Aaron Siegel The Securities and Exchange Commission's short-lived attempt to regulate the hedge fund industry will continue to have an effect down the road, according to a report released last month by Greenwich (Conn.) Associates. The SEC required that hedge funds with more than 14 investors and at least $25 million in assets register and undergo inspections.

The rule, which went into effect in February, was struck down June 23 by the U.S. Court of Appeals for the District of Columbia Circuit, and the SEC said last month that it won't appeal the ruling. Despite the short life of the rule, six of the 22 hedge funds asked by Greenwich if they would keep their registration status even if the requirement to register went by the wayside...

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