When the Dodd-Frank reform bill was signed last summer, hedge funds and private equity firms fretted over the prospect of being really regulated for the first time. But a year later, it's become clear that no regulator – especially not the overburdened SEC – is prepared for such a task.
The registration and regulation of hedge funds, private-equity funds and other "alternative" investment advisers was one of the cornerstones of the financial reform bill. It was supposed to shine a light into the otherwise murky world of institutional trading – a world that's often blamed for everything from the financial crisis to the Bernard Madoff scam. But the SEC can't even answer the simple question of when hedge funds must register, which hardly inspires confidence in the oversight of what is now a multi-trillion dollar industry.
"I've never seen anything like this, and I've been practicing for almost 30 years as a regulatory lawyer in the investment management area," says Laurin Blumenthal Kleiman, a partner at Sidley Austin…..
http://finance.fortune.cnn.com/tag/hedge-funds/
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