SEC Commissioner Says Regulator Will Struggle With Hedge Fund Registration

by Glen Shapiro, LawAndTax-News.com, New York

06 October 2005

Speaking at a meeting of the Managed Funds Association last week, SEC Commissioner, Paul Atkins predicted that the US securities regulator will struggle to cope when new hedge fund registration rules come into force next February.

Commissioner Atkins, who fought the introduction of the registration requirement, explained to MFA members that:

"Just as some of you are working hard to prepare to deal with us, we at the SEC are struggling to get ready to deal with you. We have neither the resources nor the expertise to oversee all of the potential new registrants."

He went on to add that the new initiative was likely to mean that "precious time and attention" are diverted away from oversight of the mutual fund industry, and warned that:

"The SEC's current budgetary problems make it unlikely that we will be able to hire more examiners in response to the increased registrant pool."

However, speaking with regard to the Securities and Exchange Commission's new chairman, Christopher Cox, Commissioner Atkins observed that:

"Chairman Cox comes to the job as an insightful, engaged, enthusiastic leader. I anticipate that we will see a renewed, receptive approach to regulation overall. As a consequence, I hope that we will see a reasoned approach towards the implementation of the hedge fund rule."

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