WASHINGTON (HedgeWorld.com)–A subcommittee of the House of Representatives voted in favor of the Securities Fraud Deterrence and Investor Restitution Act, H.R. 2179.
The idea of the bill is to enhance the ability of the Securities and Exchange Commission to return funds obtained from securities frauds to the victims.
One group of potential beneficiaries of this bill, fund of funds managers, is so far unenthusiastic. A typical reaction was that of Richard Rego, managing partner of Araca Hedge Equity LLC, Glastonbury, Conn. “There already are procedures and ways to get money back. This doesn’t sound like it will add very much,” he said.
The bill is sponsored and was introduced by Rep. Richard H. Baker (R-La.), chairman of the capital markets subcommittee that voted Thursday. It was co-sponsored by Rep. Doug Ose (R-Calif.), the subcommittee’s vice-chairman, Rep. Michael G. Oxley (R-Ohio), chairman of the full financial services committee, as well as by Rep. Susan Kelly (R-N.Y.), and Rep. Patrick J. Tiberi (R-Ohio).