Now that actual legislation has been drafted, top hedge funds have been "skittish" about their initial support of government oversight and more transparency. Dan Molinski and Joseph Checkler for Dow Jones Newswires report that shortly after Sens. Charles Grassley, R-Iowa, and Carl Levin, D-Mich, introduced a bill requiring hedge funds to register with the SEC, top hedge funds offered no comment, weren't available or questioned the bill's efficacy.
Other lawmakers rallying for oversight include SEC Commissioner Elisse Walter, who told Reuters in February, "I generally do support that notion (of hedge fund registration. But the devil is in the details. Registration has to be meaningful." Walter gave no comment as to the meaning of "meaningful."
Those on a similar crusade include Treasury Secretary Timothy Geithner and SEC Chairman Mary Schapiro, who said they support a registration requirement for the loosely regulated pools of capital, according to Reuters. SEC member Luis Aguilar has also noted Congress should ensure the SEC has the jurisdiction to regulate hedge fund advisors.
The proposed bill would require hedge funds to file with the SEC, cooperate with the SEC's request for information and adhere to the same anti-money laundering laws implemented for financial institutions.