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Registration’s Lingering Effects

It appears as though the ill-fated SEC hedge fund registration requirement will have a lasting effect on many in the hedge fund industry.

It appears as though the ill-fated SEC hedge fund registration requirement will have a lasting effect on many in the hedge fund industry. A new report from Greenwich Associates (Greenwich, Conn.) argues that despite being overturned in June, the SEC rule requiring hedge funds to register already has resulted in significant cost increases in compliance staff (14 percent), upgraded technology (25 percent), best practice implementation (29 percent) and the installation of monitoring procedures.

Greenwich Associates surveyed senior managers from 47 hedge funds, 70 percent of which already were registered with the SEC. Of those registered, 27 percent do not plan to de-register as a result of the federal appellate court's ruling that struck down the hedge fund regulation. The report notes that respondents believed de-registration could send the wrong message and appear as "flip-flopping" to investors. <<<

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Stressed Out by Compliance, Reputational Damage & Fines?
Stressed Out by Compliance, Reputational Damage & Fines?
Financial services executives are living in a "regulatory pressure cooker." Here's how executives are preparing for the new compliance requirements.