The Alternative Investment Management Association (AIMA), a global hedge fund industry association, today reaffirmed its supports for measures that would mandate registration of US Hedge Fund Managers with the SEC and “for the reporting of systemically relevant information by larger managers to national authorities in the interests of financial stability.” AIMA’s statement comes as US Representative Paul Kanjorski’s bill won bi-partisan support from the House Financial Services Committee.
According to AIMA’s press release, “the Private Fund Investment Advisers Registration Act 2009 will make the registration of hedge fund managers in the U.S. mandatory for the first time.” The bill is expected to face a vote in the House of Representatives later this year.
U.S. hedge fund managers are not currently required to registrar with the SEC, although many do so voluntarily. For a brief period in 2007, Hedge Funds were required to register. The rule was overturned when activist hedge fund manager Philip Goldstein of Bulldog Investors successfully challenged the rule through the US court system.
Todd Groome, AIMA Chairman, commented “Registration of hedge fund managers and the supervisory dialogue that this creates between managers and the authorities is valuable, but it is not a costless exercise. It is important that the reporting of market information in the interests of financial stability focuses on relevant information and is consistent with the supervisory capacity of national authorities; managers should not be burdened with expensive and unnecessary reporting requirements. If we ask even smaller managers to provide such information, we run the risk of overwhelming managers and supervisors. It is a question of striking the right balance…It is important to ensure that any new regulatory framework does not create unintended consequences, such as duplicative requirements or unnecessary additional costs on hedge fund managers. We look forward to continuing our dialogue with policymakers on possible revisions and further enhancements to the bill.” |
