Hedge Funds Can’t Go Unregulated, Cox Says

Law360, New York (July 25, 2006, 12:00 AM EDT) -- An appeals court ruling last month that the Securities and Exchange Commission cannot regulate the hedge fund industry has left a regulatory void, SEC Chairman Christopher Cox told a Senate panel on Tuesday.

“We must move quickly to address the hole that the Goldstein decision has left,” Cox said. “Some improvements will be possible through administrative action. Others, however, may well require legislation.”

However, Cox said that if legislation was the answer, Congress should take heed not to interfere with investment strategies such as derivatives trading,...
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