On Hedge Fund Disclosure

Introduction In what many have labeled the post-Enron world, in bodilyd and financial accountability and transpargonncy have taken bold, bracing meanings. From confederacy development organizations to the largest corporations in the S&P 500, corporate debacles such(prenominal) as Enron have piqued market scrutiny and the demand for more than stringent restrictive oversight. The asset management profession be to be no exception, as the near-collapse of confuse pedigree thou Term Capital Management (LTCM) nearly triggered a try disruption of world financial markets during the late nineties. As a consequence, the oft clandestine world of dip bullion was by and large thrust under the governments regulatory microscope.[1] The US Securities and Exchange Commission focused that microscope when, in 2003, they equip a report that ultimately recommended more stringent manufacturer revelation and regulatory standards for hedge fund advisors. On October 26th, 200 4, some(prenominal) to the objection of the sedulousness and other related entities, three pop out of five of the secants commissioners (the majority) voted to mandate more stringent disclosure requirements in the form of registration for hedge funds with over $25 million in assets. The majoritys ratiocination here clearly did not go without major contention.

In this paper, I testament argue that heightened rule of hedge funds through mandatory registration is supernumerary given the patiences increasingly competitive market dynamic. At stovepipe registration will save the due south from an embarrassment resembling to that caused by the mutual fund scandals in 2! 003. At castigate it will prove an excess cost and consequence on an industry naturally adopting stronger compliance, operational, and transparency standards and operations. While on that point whitethorn be some legitimate concerns about the hedge fund industry (HFI), mandatory registration and its demands may are a suboptimal means of prognosticateing such concerns. In constructing this argument, this paper will address the following...If you want to get a full essay, army it on our website: BestEssayCheap.com

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