WASHINGTON (HedgeWorld.com)–In a speech to the National Press Club in Washingon, Securities and Exchange Commission Chairman William H. Donaldson made brief mention of the SEC’s review of the hedge fund industry.
In outlining the current work of the commission, he said: “We are also in the process of reviewing the hedge fund industry, given its extraordinary recent growth, to ensure that investor protection remains paramount.” Mr. Donaldson added that the SEC staff would be issuing recommendations in the next month or two, according to the statement posted on the SEC web site.
The hedge fund investigation has been lengthy, starting last year and encompassing information from 67 managers with US$162 billion in assets under management. The highlight of the SEC’s review was a two-day round table discussion that covered numerous issues that the industry is facing as it grows.