News
White House Proposes Bill to Increase Compliance Duties for Hedge, Private Equity Funds
By Brian Monroe
printThe Obama administration Wednesday released proposed legislation detailing new financial compliance and recordkeeping requirements for hedge, private equity and venture capital funds. The bill, called the "Private Fund Investment Advisers Registration Act of 2009," would require the funds to register with the Securities Exchange Commission if they manage more than $30 million in assets. The administration first announced its plans to seek oversight of the industry in a June 17 proposal that broadly addressed financial regulation. Under the proposed bill released Wednesday, registered funds would be required to divulge details about their assets and balance sheets, be more transparent to...
TO READ THE FULL STORY
Related News
Ahead of expected anti-money laundering regulations for investment advisers, some private equity firms may find themselves subject to such oversight for a reason few would have guessed: their fee structures.
It took over a year of negotiations but plans to impose EU anti-money laundering rules on U.S. hedge funds and private equity firms have officially been dropped, according to a European directive adopted Thursday.
A European Union financial reform bill scheduled for a vote Monday could impose new anti-money laundering requirements on offshore investment vehicles, including U.S. hedge funds, say analysts.
A lawsuit against JPMorgan Chase by a Florida investment firm that lost $12.8 million to convicted hedge fund manager Bernard Madoff could mean more regulatory scrutiny for the bank.
In the rush to better regulate the anti-crime controls of financial firms, international authorities may be ignoring a rarely abused but highly lucrative financial instrument: private equity funds.
Plans by the U.S. Treasury Department to revamp regulatory oversight of financial institutions will likely spur on efforts to impose anti-money laundering compliance requirements on hedge funds, say consultants.
Hedge fund lobbyists increased their spending by over 700 percent between 2006 and 2008 in an effort to stave off stricter oversight, according to data provided by a non-partisan research group.
Senate lawmakers introduced a bill Thursday that would require hedge funds to implement anti-money laundering controls and answer to the Securities and Exchange Commission.
New Year's Eve may have come and gone and all of the post-celebration headaches faded, but financial institutions are going to need many more months to recover from 2008.
U.S. lawmakers will likely vote to implement anti-money laundering and other controls on hedge funds in the wake of the alleged multi-billion dollar Ponzi scheme by Bernard Madoff, say consultants.
Almost a quarter of investment management companies do not have means to monitor the transactions they handle for suspicious activity, including fraud and money laundering, according to a survey by Deloitte.
Hedge funds are fast becoming a top destination for fraudsters and money launderers, experts say.
More than five years after regulators proposed that hedge funds be subjected to anti-money laundering standards, compliance experts in Washington, D.C., say the initiative will continue to gather dust as regulators shift their priorities toward the capital crisis and other regulatory issues.
The U.S. Treasury Department's Financial Crimes Enforcement Network proposed anti-money laundering rules that have remained dormant for nearly five years.