Bill Would Bring Hedge Funds Under SEC Scrutiny

Law360, New York (January 29, 2009, 12:00 AM EST) -- A Senate bill introduced Thursday would bring all hedge funds under the scrutiny of the U.S. Securities and Exchange Commission.

The Hedge Fund Transparency Act of 2009, introduced by Sens. Carl Levin, D-Mich., and Charles Grassley, R-Iowa, would require that all hedge funds and other alternative investment groups managing $50 million or more register with the SEC, closing what the two senators called a “loophole” in the Investment Company Act of 1940.

The senators said that recent financial scandals, including the collapse of two offshore hedge...
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