HFA: US regulators 'being set up for failure'
Friday 23 December 2011 - by Will.Henley@gfsnews.com
For Ron Geffner, vice president of the Hedge Fund Association, the past year has not thrown up too many surprises on the regulatory front - although that is small comfort for either him or his US-based members.
The 2011 regulation that has him most agitated however is the registration requirement, approved by the Securities and Exchange Commission in June. In the words of SEC chairman Mary Schapiro, it was designed to ensure that advisers who previously operated "under the radar" will now be monitored.
However the requirement has had the hedge fund industry up in arms. It was also enough to make billionaire investor George Soros decide in July that his investment firm, Quantum Fund, would hand back client money and become a fully family-owned business after 40 years of trading.
Geffner takes particular issue with a $150m (€115m) threshold, under which advisers are exempted, as being far too low, arguing it will unnecessarily capture smaller firms who cannot afford the associated compliance burden.
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