From NY Times Dealbook: Hedge funds had long operated under the regulatory radar, with few reporting obligations and a well-deserved reputation for secrecy. Now, the government is weighing whether to require them to report any suspicious transactions, like insider information or manipulation of stock prices.
Reuters reported that the Financial Crimes Enforcement Network, an office in the Treasury Department known as FinCEN, is considering a rule that would require hedge funds to file reports about possible wrongdoing in their operations. This would effectively require hedge funds to turn themselves in and invite an investigation of their investment activities.
The first step in requiring greater disclosure by hedge funds came from the Dodd-Frank Act’s mandate that firms with at least $150 million in assets register with the Securities and Exchange Commission as investment advisers and file regular reports….