Tuesday, November 28, 2006

SEC to Consider New Rules Affecting Hedge Funds

The SEC's Sunshine Act Meeting Notice (linked above) confirms that the Commission is going to consider changing the definition of accredited investor (which will have the effect of reducing the number of individuals who can invest in hedge funds, adn to add a new fraud rule to the Investment Advisers Act of 1940.

The relevant parts of the notice:
The Commission will consider whether to propose a new rule under the Securities Act of 1933 to revise the criteria for natural persons to be considered 'accredited investors' for purposes of investing in certain privately offered investment vehicles.

The Commission will consider whether to propose a new rule under the Investment Advisers Act of 1940 to prohibit advisers from making false or misleading statements to investors in certain pooled investment vehicles they manage, including hedge funds.
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