ST. LOUIS, MO (HEDGECO.NET) – A St. Louis based law firm, affiliated with hedge fund management firms has written a letter to the US Securities and exchange Commission, offering the agencyalternatives to its current hedge fund regulation proposals. In a letter, Bryan Cave corroborated with other investment banks as well as an unnamed US Senator on the Senate Banking Committee to puttogether its alternative proposals to the SEC�s hedge fund plan.
The SEC is seeking feedback for its Hedge Fund regulation proposals unveiled last month. The proposals seek to bring the US hedge fund establishments under the regulatory dragnet of the agency. Robert Leonard, a partner at the Bryan Cave law firm speaking on its feedback letter, said the comment letter sent to the SEC was positive. He explained, �There was an agreement that this [comment letter] represented a good middle ground on the subject. We asked ‘what was the SEC really looking to accomplish with the proposed rule?� According to him, �the SEC is hoping to collect information, prevent fraud, and limit the “retailization” of hedge funds.�
Leonard argued that such objective could be accomplished without asking all hedge funds to register with the agency. According to Leonard, SEC�s form D could be amended to include more specific information such as the ones stated here.
Other hedge fund industry participants think the Bryan Cave proposals could be a compromise, enabling the SEC to achieve its stated goals without overly being intrusive into the affairs of hedge fund managers. Ron Geffner, of Sadis & Goldberg in New York, agreed the new Cave proposals would enable the SEC to achieve its objectives. However there is still a host of managers that think the proposal would not enable the SEC to achieve its total regulatory oversight on the US hedge Funds.
Meanwhile, there are new efforts to get the SEC to extend its September 15 deadline for individuals wishing to comment on its new initiatives.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: [email protected]
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