Financial Rules Bill proposes large hedge funds must register with SEC

16 March 2010

Hedge funds with assets of more than $100 million will have to be registered with the Securities and Exchange Commission under proposals in the new Financial Rules Bill.

The legislation was unveiled by Senate Banking Committee chairman Christopher Dodd and includes a range of other measures, such as giving the Federal Reserve the power to break up large banks if they pose a "grave threat" to the economy.

It also contains a recommendation that Barack Obama's Volker Rule plan, which would restrict how retail banks are involved with hedge funds, is only introduced following a period of study by a new stability council.

Gilbert Schwartz, a former Federal Reserve attorney, told Bloomberg that the bill does not go far enough.

"It has a lot of the same provisions that we've already seen," he said. "It's more of a ho-hum proposal."

Earlier this month, Mr Dodd rejected calls from Republicans to delay the bill in order to draw up a fuller program of reform, stating that such requests were "terribly naive", reported Reuters.

By Claire Archer

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development