On January 27, 2009, Representatives Michael E. Capuano (D-Mass.) and Michael Castle (R-Del.) introduced the Hedge Fund Adviser Registration Act of 2009 (HFARA).  The HFARA (H.R. 711) would remove Section 203(b)(3) from the Investment Advisers Act of 1940.  The removal of Section 203(b)(3) would effectively require many currently unregistered hedge fund managers to register with the SEC as investment advisers, thereby subjecting them to the various obligations of registered investment advisers, including annual disclosure requirements, advertising and marketing restrictions and recordkeeping requirements.  In February of this year, the Hedge Fund Law Report talked to Rep. Capuano about his rationale for proposing the HFARA.  At that time, he told us: “No one can look me in the eye and tell me they know how many hedge funds there are or how many assets they manage.”  Last week, we talked in greater depth with Rep. Capuano about the rationale behind his proposal to eliminate the private adviser exemption, and his views on hedge fund regulation generally.  His comments offer deeper insight into the intent of the HFARA, and the scope and focus of any law that may result from the bill or others that seek to regulate hedge funds or their managers.