Infovest21 More details coming on regulation

SEC Chairman Mary Schapiro, speaking at Georgetown University’s McDonough School of Business in Washington DC on Friday, talked about hedge funds and upcoming regulation.

An excerpt from Infovest21 News Provider article:

Schapiro said issues remain regarding hedge fund regulation but predicted that any new hedge fund regulation would require more detailed disclosure to regulators but possibly less for public disclosure. She talked about the tension between the need for transparency and the need for hedge funds to have an investment strategy that is not front run by competitive firms. The SEC is exploring what the requirements might be like and how to balance competitive concerns. One consideration, she said, is the possibility of publicly releasing hedge fund information on a time-delayed basis.

In mid July, the US Treasury Department submitted legislation to Congress that would require hedge funds to register with the SEC. The proposal would require hedge funds, private equity firms and venture capital managers, who have at least $30 million in assets under management, to report assets under management, leverage, off balance sheet holdings, counterparty risk exposures, trading and investment positions, and trading practices on a confidential basis. The Treasury Department said the proposal, part of the Obama administration’s plan to overhaul financial regulation, “would help protect investors from fraud and abuse, provide increased transparency and provide the information necessary to assess whether risks (of the funds)…pose a threat to our overall financial stability.”

Similar proposals have been made by Senators Jack Reed, Charles Grassley and Carl Levin.

For those who are interested in regulation, Infovest21 is holding an afternoon seminar/reception on the topic today in Manhattan. Main topics are:
 Legislation proposal for regulation
 SEC activities
 Trading and Valuation Policies
Speakers:
Benjamin Haskin, Willkie Farr & Gallagher
Martin Lax, McGladrey & Pullen
Jane Stabile, IMP Consulting
Lance Friedler, Sadis & Goldberg

To register, call 212 686 6440 or Infovest21