U.S. federal agency Securities and Exchange Commission (SEC) is urging large hedge funds and other private-fund advisers to file periodic reports with regulators to help evaluate threats to the financial system, The Wall Street Journal reports. The SEC has, however, decreased the number of large firms that have to disclose information quarterly and is exempting small firms from the move.
The new rule may call for regulatory reporting by advisers managing large hedge funds with more than $1.5 billion in assets, exempting those with less than $150 million in private-fund assets under management. The firms placed in the middle will need to file annually. The large hedge fund advisers may have to disclose their aggregate exposures by asset class, geographical concentration and turnover. The SEC is drawing up the rules jointly with the Commodity Futures Trading Commission.
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