US lawmakers to hold hedge fund hearings

1 May 2009

The House of Representatives' financial services committee is planning to hold a hearing on the regulation of the $1.34 trillion hedge fund industry on May 7th, according to reports.

A source familiar with the panel's operation told Reuters that the hearing has not been made public because the date remains "tentative".

The report comes after Mary Schapiro, the chairman of US market regulator the Securities and Exchange Commission (SEC), said the watchdog needs greater powers over hedge funds - including the authority to inspect and examine their books.

Speaking at the Reuters Global Financial Regulation Summit, Ms Schapiro also said the SEC should be granted rulemaking authority over the sector so it can "respond to crises as they emerge".

Financial services committee chairman Barney Frank has already said he will introduce a wide ranging package of regulatory reforms later this year, which will include a requirement for hedge funds to register with the SEC.

Mr Frank said he is confident the package will get the support of Congress.

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