(by Dr. Goldfinger)

Some of U.S. industry groups have resisted the registration of hedge funds. They are: the Managed Funds Association, the Alternative Investment Management Association, the International Swaps and Derivatives Association, and the Futures Industry Association. They have written a letter to the Security and Exchange Commission with the request of a 45-day extension of the comment period for them to add some time for putting their forces together.

The situation within SEC itself is ambiguous. SEC chairman William Donaldson and two commissioners support the proposal; two others are opposed. “Donaldson goes in January, so if they can keep stretching it out, they figure they might have a more sympathetic chairman by the time the vote comes around. They only need to change one vote to stop the thing happening,” said one of the hedge fund managers.
September 15 is a deadline for the comment, but the groups try to extend it to October 28. The SEC commented on the situation. It said comment periods were extended before but not often and extension was usually announced in a few days before the deadline.
Registration will apply to managers with assets over $30m only.