WEST PALM BEACH, FL (HEDGECO.NET) – The Securities and Exchange Commission voted 3-2 to require that independent outsiders head board chairmanship of mutual funds. Two republican members of the SECboard however opposed Chairman William Donaldson�s initiative, while Donaldson joined hands with two democrats, Harvey Goldschmid and Roel Campos, in passing the proposal.
According to Donaldson, members of the SEC board had voted 99% unanimously in past votes on issues since he became the Chairman. This split points to the sharp division that has marked issues pertaining to the US financial markets. The pending US hedge fund regulatory questions have been sharply contested with Donaldson leading the forces in support of such regulation, while other members continue to oppose such measure.
Donaldson hinted that the agency would be meeting shortly to consider that issue which proposes that hedge fund advisers should register with the SEC. The chairman did not set any particular timetable for such consideration. The position of Chairman Donaldson has shifted from prior regulatory proposals. As opposed to outright hedge fund regulations, Donaldson now favors regulation of hedge fund advisers.
According to published reports, republican members of the SEC have opposed such provision; it is however unclear what side would prevail when the SEC takes a formal vote over such measure. The hedge fund regulation proposals have met some serious objections and criticisms from both the hedge fund industry participants as well as prominent and influential government agency heads such as Alan Greenspan.
Donaldson recently told news reporters, “We’ll just have to see where people come down,” the SEC chairman in answering a reporter�s question on when this matter would be decided said, it would happen soon, adding �”it’s very high on our schedule.”
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: [email protected]
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