In my opinion, I feel that investors will be pleased should managers be forced to provide more information. A big gripe with hedge funds has always been that they are secretive, risky, you don't know where the money is going, etc etc. Among the many things investors want to know is the mangers history, performance of past funds, specific strategies used, asset allocations, manager expenses and balance sheets. That's not to say all of this will become accessible, but the SEC is trying to increase transparency as much as possible. Keep in mind however, they have been unsuccessful in past attempts to increase regulation. When they proposed that all hedge funds must register with the SEC, it was squashed in court, mainly because of a few very influential hedge funds that expressed disdain. While there might not be a registration form, the SEC does want to make clear that hedge funds and hedge fund managers will be held accountable for their actions just as any other market participant. Hedge funds are still subject to SEC regulations and enforcement under the anti-fraud, civil liability, and other provisions of the federal securities laws.