WEST PALM BEACH, FL (HEDGECO.NET) – Some members of the US Mutual fund industry are still trying to avoid accountability following the scandals which rocked the mutual fund industry and alsoimplicated some hedge fund firms as well. The head of the U.S. Securities and Exchange Commission’s Investment Management Division, Mr. Paul Roye made those remarks to the fund-industry conference inCalifornia.
Mr. Roye said, “In spite of all that has transpired, some in the industry have not yet fully embraced the need to encourage accountability, in fact, many of the criticisms of our new rules and rule proposals, I believe, can be chalked up to efforts to avoid accountability.” Roye added.
Roye explained that some fund operators were against the moves being proposed to increase accountability, charging that those funds that oppose such proposals are attempting to avoid responsibility. In the fallout following the fund scandals, many criticized the SEC for failing to detect and stop such scandals. The federal regulator has made some proposals and new rules, which according to the regulator would check such abuses.
Such reforms among other issues would also address fund advertising and disclosure matters, as well as proxy voting and the process of selection of directors. There are opposing views about the extent, which the new laws should go particularly in the area of hedge funds regulations. Members of the US congress have also weighed in on such matters.
It remains unclear how far the new proposals would go, and when the new laws would be unveiled. It is however certain that some regulatory changes are coming; many lobbyists remain opposed to such proposals. Many hedge fund industry watchdogs such as AIMA have made public their opposition to any new regulations for the hedge fund industry.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: [email protected]
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