The idea of requiring registration of all managers was included within the SEC’s staff report, entitled ‘The Implications of the Growth of Hedge Funds’, released on Monday. The authors said many of their concerns arose from the unregulated status of hedge funds, and they identified their “primary recommendation” as asking the SEC to “consider revising its rules” to require hedge fund advisors register under the Investment Advisers Act. The SEC’s chairman, William Donaldson, said the report was “particularly important”, given the substantial growth in hedge fund assets and the SEC’s lack of information about this kind of investor.
Founded in 1991, the MFA is a trade association that represents investors within the hedge fund, futures fund and broader alternative investment community. It currently has around 700 members.