The United States Court of Appeals for the DC Circuit has stricken the SEC's rule which required the registration of hedge fund managers under the Investment Advisers Act of 1940. The rule, which was ill concieved and premised upon questionable factual findings, caused approximately 1,000 hedge fund managers to register under the Act.
The ruling now throws into question those registrations, and managers are going to have to decide whether to withdraw their registrations, or to remain registered pending an SEC response to the ruling.
