Tuesday, October 27, 2009
Registration Bill Includes One-Year ‘Transition,’ Requires Compliance Officers
Hedge fund registration in the U.S. again approaching. House Committee yesterday approved a bill that includes a one-year transition period before registration with the S.E.C is mandatory. The bill’s author, Rep. Susan Kosmas (picture from FinAlternatives) said the delay is needed to allow both sides to get their ducks in a row.
“The SEC will need time to prepare for the additional responsibilities that will come from the registration of potentially thousands of new managers,” Kosmas claimed, despite the fact the SEC has itself imposed mandatory registration of hedge funds four years ago before that rule was tossed by the courts. Kosmas also said that hedge funds needed time to set up the infrastructure for registration and the inspections that will follow it: Among other things, the bill would require hedge funds to hire chief compliance officers.
The head of the agency charged with overseeing hedge funds threw her support behind requiring the hedge fund managers to register. Speaking at the 2009 SIFMA Annual Meeting, Mary Schapiro said that hedge funds “have flown under the radar for far too long” and that she “will work with Congress to avoid creating broad new carve-outs or exceptions that could come back to haunt investors in later years.”
When you need a Partner to staff for Compliance, be sure to contact Rosenthal Recruiting at (973) 826-0537, via
Facebook Page ,Website or LinkedIn.
Posted by Stuart Rosenthal