WASHINGTON (HedgeWorld.com)–The Securities and Exchange Commission will host round table discussions on a wide range of issues related to hedge funds, on May 14 and 15 in the William O. Douglas Room at SEC headquarters.
The SEC is looking especially for insight on the following topics: the structure, operation and compliance activities of hedge funds; marketing issues; investor protection issues; the current regulatory scheme; and whether additional regulation is warranted. Hearings on these matters have been in the offing for some time. They were expected in November 2002 but were postponed due to the resignation of then-chairman Harvey Pitt.
"From the earliest days [of the investigation], there were going to be round tables," said the head of the Managed Funds Association, John Gaine. "First it was going to be August, then, September, then November. When Mr. Pitt resigned, we heard that the staff had to wait to find out when the new chairman wanted to do it. So now again we have a date. This isn't news." He also said that he expects "two full days, nine-to-five, with a lot to discuss."
Leon Metzger, a member of the investor risk committee of the International Association of Financial Engineers, New York, said that the IAFE has not yet convened to form an opinion on the upcoming round table. Speaking strictly for himself, Mr. Metzger added that the announcement is "a positive development, and I applaud the commission for its efforts. I'm sure that the industry will benefit from the round table and all the diligent work done by the talented staff of the commission."
When asked specifically about the issue of the valuation of hedge funds, Mr. Metzger said that that is a complex topic. "Clearly one size does not fit all."
Related Developments
The announcement of the round table dates came just a day after the U.K.'s Financial Services Authority issued a new statement of its stance on hedge fund issues. The FSA had considered a liberalization of marketing rules for hedge funds in the United Kingdom but has now decided that there is no demand for such a move.
