The Securities and Exchange Commission’s (SEC) call for exhaustive disclosure by hedge funds may bring midsize money managers into its net, The Wall Street Journal reports. Differences over the understanding of asset size between hedge funds and SEC could entail registration of midsize hedge funds with the regulatory body.
The Dodd-Frank financial-overhaul law, adopted in June last year, requires registration of hedge funds with $150 million or more with the SEC. The commission expects between 690 and 1,260 more hedge fund advisers to register under the new guidelines. The required compliance infrastructure could cost money managers between $31 million and $57 million.
Click here for the story from The Wall Street Journal.