Tuesday, April 28, 2009

Update: Grassley on the Hedge Fund Transparency Act

As reported by the Guardian, Sen. Charles Grassley explained that the purpose of the proposed legislation he co-sponsored with Sen. Carl Levin, the "Hedge Fund Transparency Act", is to reverse Goldstein v. SEC, the 2006 D.C. Circuit Court of Appeals decision which vacated SEC rules requiring registration of qualifying hedge fund advisers. Under the proposed legislation, the SEC would be granted the necessary authority to reinstate its hedge fund adviser registration rules. Grassley also stated that his legislation would not require the disclosure of the names of hedge fund clients, as had previously been interpreted by many legal commentators.