More On Legal & Compliancefrom The Advisor's Professional Library
- Agency and Principal Transactions In passing Section 206(3) of the Investment Advisers Act, Congress recognized that principal and agency transactions can be harmful to clients. Such transactions create the opportunity for RIAs to engage in self-dealing.
- U.S. Securities and Exchange Commission Information This information sheet contains general information about certain provisions of the Investment Advisers Act of 1940 and selected rules under the Advisers Act. It also provides information about the resources available from the SEC to help advisors understand and comply with these laws and rules.
Senator Chuck Grassley (R-Iowa), the ranking Republican on the Senate Finance Committee, introduced the Hedge Fund Registration Act on May 15, legislation that would require hedge funds to register with the SEC. Grassley's bill comes on the heels of a D.C. Circuit Court of Appeals ruling last year that overturned the SEC's rule requiring such registration.
The Act "would enable the Securities and Exchange Commission to do what it was already trying to do," Grassley said in introducing the bill, and "gives members of Congress the opportunity to say there should be greater transparency with hedge funds."
Grassley surveyed federal agencies about hedge fund transparency last October. Earlier this year, he joined in requesting a review by the Government Accountability Office of the scope of public and private pension plan investments in hedge funds and what returns and risks are likely for worker retirement funds. In March, Grassley filed legislation similar to the legislation introduced today as an amendment to S.4, the 9-11 homeland security legislation.