WEST PALM BEACH, FL (HEDGECO.NET) – The president of the mutual fund industry’s lobbying group endorsed the recent efforts by the Securities and Exchange Commission to subject the US hedge fundindustry under its regulatory oversight.
Paul Stevens who was recently elected the president of the Investment Company Institute said he supports the move by the SEC to get US hedge fund companies to register with them. Mr. Stevens told the National Press Club correspondent SEC�s call to register hedge funds should be heeded by members of the US hedge fund industry.
The proposals were recommended late last year by the SEC staff to require US based hedge funds to provide through a registration process some information about their business. The hedge fund industry groups and organizations have opposed such a proposal.
Stevens explaining his views about the need for such registration said, that several investigations have revealed that hedge funds were closely involved in recent mutual fund �market-timing� allegations. While such charges are made, no hedge fund company has been convicted of such charges, and in recent statements, Clinton Group hedge funds charged with similar allegations were cleared of any wrongdoing.
The SEC Commissioner Harvey Goldschmid said in a recent interview that the SEC has discovered “meaningful amounts” of fraud recently in the hedge fund industry. Goldschmid charges that �It’s too much money out there — unregulated, unseen, unknown�.
While hedge fund assets have grown significantly, [about US $1 trillion] such assets are however dwarfed by those of the mutual fund industry [US $7.5 trillion]. Additionally, the percentage of fraud in the hedge fund industry is significantly smaller that that of Wall Street, according to published reports.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: [email protected]
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