The recent news of Senator Dodd’s (D-Conn) proposed regulation to make hedge funds with assets of more than $100 million register with the Securities and Exchange Commission shows just how little Congress and the powers-that-be have learned in the wake of the credit crisis, Madoff and anything else of substance that has led him and others to propose this new legislation. A good story about the proposed legislation can be found by clicking here.
Requiring registration won’t stop the fraud, the volatility problems or insider trading for that matter, because in short it is meaningless. It is window dressing. To become a Registered Investment Advisor is about as easy as getting a drivers license and we all know how many people pass that test each year. Furthermore it will hurt investors. Being an RIA implies that there is oversight and what we have learned in the wake of Madoff, is that even with oversight things slip through the cracks.
This is just one of many topics we will be talking about on Tuesday during the HedgeAnswers conference call.
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