NEW YORK (CNNMoney.com) — The Securities and Exchange Commission has only until Aug. 7 to decide whether to appeal a ruling against its hedge fund regulation measure – but how the SEC will proceed is far from clear.
Last week the U.S. Court of Appeals for the D.C. circuit threw out the SEC’s hedge fund registration rule, which took effect in February after years of intense debate. The rule required hedge funds to register with the SEC as investment advisers and submit to occasional inspections of their books and records.
The SEC now has a number of options to consider, according to Mitch Nichter, a partner in law firm Paul Hastings.
It can petition for a re-hearing in D.C. or for a “stay” pending an appeal to the U.S. Supreme Court. The SEC’s original rule would stay in effect for the time being in either case.
The SEC would have until Sept. 21 to file an appeal to the Supreme Court, and that option would buy the most time, Nichter said.
