Hedge funds resigned to more regulation

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What else are they going to say? Alternative investment honchos seem resigned to more regulation, which is a pretty smart way to play the political climate. Fairly or not, hedge funds and private equity funds have been blamed somewhat for a lot of what ails the financial system. While people last year vowed to fight additional oversight–the legal fight to overturn a hedge fund registration requirement was a big success–we’re seeing a more resigned attitude now.

The industry focus ought to be on helping craft a reasonable set of rules that do not go overboard, unwisely tampering with compensation, fees and other areas. Some leverage restrictions may be in the works. We may also see a move to raise “accredited” investor requirements. Basic registration and disclosure are fine. Beyond that, it’s unclear what’s coming. Indeed, even after the registration rule was abrogated last year, some funds continued to comply voluntarily. The details have yet to be released. 

For more:
- here’s some background from MarketWatch

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