Boston Business Journal – New disclosure rules handed down by the Securities and Exchange Commission are rippling through Boston’s investment community, triggering confusion and even some animosity among local hedge fund managers who say the regulations miss the mark.
SEC officials say 962 hedge fund managers have registered with the government since it amended the Investment Advisors Act of 1940. The measure, which requires hedge fund managers to disclose certain information about their operations, aims to protect investors and stabilize securities markets by creating better tracking mechanisms for the hedge fund sector.
That said, it is still unclear whether the SEC’s changes will be permanent: The new rules are being challenged in court by New York hedge fund Bulldog Investors, which is suing the SEC for overstepping its regulatory authority.
