WASHINGTON (Reuters) — The Securities and Exchange Commission said on Monday it will not appeal a court decision nullifying a rule requiring advisers of most hedge funds to register with the investor protection agency.
The decision comes six weeks after an appeals court dealt a severe blow to the SEC’s attempt to begin overseeing the $1.3-trillion hedge fund industry, forcing the agency to rethink its regulatory strategy.
“Since the appellate court’s decision was based on multiple grounds and was unanimous, further appeal would be futile and would simply delay and distract from our goal of advancing investor protection,” SEC Chairman Christopher Cox said in a statement.
