SEC proposes oversight for hedge fund industry

0 Comments | AFP, July, 2004

WASHINGTON (AFP) — US stock market regulators took a step toward mandating that hedge fund advisers register for the first time, to the chagrin of an 800 billion dollar industry that has enjoyed a little government oversight.

The Securities and Exchange Commission voted in favor of a measure that would require hedge fund advisers to register as investment advisers in a 3-2 decision.

"I understand that reasonable minds differ on these issues ... But I strongly believe that we need to begin now to look around that one-trillion-dollar corner on Wall Street," said SEC chairman William Donaldson.

The proposal will be opened up for a 60-day public comment period and is subject to a second SEC vote before it is adopted.

Unlike mutual funds, scant-regulated...