Tuesday, March 24, 2009

Update: Two of Three Connecticut Bills Aimed at Regulating Hedge Funds Languish in Banks Committee

Earlier this month we provided an overview of three bills recently introduced to the Connecticut General Assembly that aim to regulate private funds with a Connecticut presence: Raised S.B. No. 953 (An Act Concerning Hedge Funds), Raised H.B. Bill No. 6477 (An Act Concerning the Licensing of Hedge Funds and Private Capital Funds), and Raised H.B. Bill No. 6480 (An Act Requiring Disclosure of Financial Information to Prospective Investors in Hedge Funds and Private Capital Funds).
Client Alert

Of the three bills introduced, only An Act Concerning Hedge Funds will be eligible for a vote in the General Assembly this year. As we reported on March 13, that bill was approved by the Connecticut General Assembly's Banks Committee and is currently under review by the General Assembly. If passed, it could become effective as early as October 1, 2009. In contrast, neither An Act Concerning the Licensing of Hedge Funds and Private Capital Funds nor An Act Requiring Disclosure of Financial Information to Prospective Investors in Hedge Funds and Private Capital Funds were reported out of the Banks Committee last week, meaning that under the General Assembly's rules neither bill may be considered for enactment in the 2009 legislative session.