The Hedge Fund Association has applauded the Obama Administration and Congress for their efforts in financial system reform, but says new hedge fund registration requirements aimed at a
The Hedge Fund Association has applauded the Obama Administration and Congress for their efforts in financial system reform, but says new hedge fund registration requirements aimed at all hedge funds, regardless of assets under management, would be unduly burdensome on smaller funds.
David Friedland, HFA president, says the latter could have a significant negative impact on the hedge fund industry and US economy.
‘If the purpose of new regulation is to control and manage systemic risk, the HFA thinks US lawmakers should focus regulation on firms with USD250+ AUM, who represent 31.3 per cent of all hedge funds and manage 95 per cent of the USD1.4trn in industry assets. Smaller firms may lack the resources to address additional oversight requirements, and represent almost no systemic risk to the financial markets,’ he says.
‘HFA supports the Administration’s efforts to subject investment advisers to increased examination and inspection, including the requirement for recurring reports to regulators, investors, counterparties, and the public. HFA also agrees with the proposal to gather data confidentially regarding size, leverage and other counterparty exposure to help regulators better assess potential systemic risk."
