Hedge Funds and Regulations
Technically, the term hedge fund does not exist. In fact, the term hedge fund applies to any fund which is sold to accredited private investors and does not have to follow through with the regulation process! Now, investment advisory is a highly regulated industry and there are several laws which have been passed to ensure compliance and minimize foul play.
However, hedge funds are immune to most of these laws. This is probably the reason why investors prefer them. However, of late, experts have been lobbying to bring this trillion dollar hedge fund industry under some sort of regulation.
In this article, we will have a closer look at some of the regulations that are avoided by the hedge funds as well as arguments in favor of and against bringing hedge funds under the purview of the Securities and Exchange Commission (SEC).
The Laws Avoided By Hedge Fund Managers
The Rationale for Regulations
The Rationale for No Regulations
Authorship/Referencing - About the Author(s)
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