Bracken: SEC Registration Solves Nothing - Hedge Fund Manager Erik Volfing Explains The Negative Implications Of Increasing The Regulatory Burden Of Hedge Funds.(Securities and Exchange Commission)

On September 29 2003, the US Securities and Exchange Commission (SEC) reported on the hedge fund industry after a 15-month investigation. The most significant recommendation is for hedge fund managers to register with the SEC under the Investment Company Act of 1940.

The findings are backed by the arguments that registration will better protect less sophisticated investors, that hedge funds active trading has a negative effect on the capital markets and that registration will give the SEC insight into hedge funds' activities.

Hedge funds are unregulated investment pools that use multiple investment strategies among various investment classes. Their investor base, includes only accredited investors (usually individuals with a net worth in excess of...

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