Comment by Rory B. O'Halloran
Hedge funds, though historically very secretive and lightly regulated, have recently been cast into the spotlight once again by the media, the United States Securities and Exchange Commission (SEC), and the New York State Attorney General. As a result of increased attention, the SEC became concerned with the tremendous growth that the hedge fund industry was experiencing. The SEC subsequently proposed changes to the regulation of hedge funds. This Comment describes the hedge fund industry and recent developments that have caused the SEC to propose new regulations. After this introduction, this Comment then surveys and analyzes the SEC's three proposed changes to the regulation of hedge funds: (1) requiring certain hedge fund advisers to register as investment advisers, (2) allowing certain hedge funds to engage in general advertising and solicitation, and (3) prohibiting the same person from simultaneously managing a mutual fund and a hedge fund.
About the Author
Rory B. O'Halloran. J.D. candidate 2005, Tulane University School of Law; B.S. 2002, Boston College.
Citation
79 Tul. L. Rev. 461 (2004)