The Securities and Exchange Commission has adopted a rule requiring for the first time that hedge fund advisers be registered and submit to SEC examinations.
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In the 3-2 vote, SEC Chairman William Donaldson and Commissioners Harvey Goldschmid and Roel Campos approved a rule Tuesday requiring hedge fund advisers to disclose basic information on themselves and open their books to SEC inspection. Commissioners Paul Atkins and Cynthia Glassman opposed the rule. Funds with less than $25 million under management would generally be exempt from it.
Much of the $1 trillion-asset hedge fund industry opposed the registration requirement, which is to take effect in February 2006.
