Representatives Castle and Capuano Propose Bill on Hedge Fund Adviser Registration, and Representative Castle Proposes Bills on Pension Investments in Hedge Funds and Study of the Hedge Fund Industry

On January 27, 2009, Representatives Michael Castle (R-Delaware) and Michael E. Capuano (D-Massachusetts) introduced the Hedge Fund Adviser Registration Act of 2009 (HFAR).  The same day, Rep. Castle also introduced the Pension Security Act of 2009 (PSA) as well as of the the Hedge Fund Study Act (HFS).  Generally, the HFAR would eliminate the exemption on which many hedge and other private fund managers rely to avoid registration as investment advisers; the PSA would require disclosure by pension funds of their investments in hedge funds; and the HFS would require the President’s Working Group on Financial Markets to conduct a study of the hedge fund industry.  We offer a detailed explanation of each bill, and include insight from an interview we conducted with Rep. Capuano.

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