The US Securities & Exchange Commission has proposed a rule change that would make it easier for investors to sue hedge funds for negligence than it is to sue mutual funds, according to a report by Risk.Net.
The US Securities & Exchange Commission has proposed a rule change that would make it easier for investors to sue hedge funds for negligence than it is to sue mutual funds, according to a report by Risk.Net.
The SEC proposal would remove a routine close in hedge funs contracts that protects managers from claims that they acted carelessly, meaning that they could be sued for simple things such as losing money in a falling market.
