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SEC Plans New Approach To Pruning Hedge Funds

October 6, 2006

This article is reprinted with permission from the October 2006 Financial issue of THE CONNECTICUT LAW TRIBUNE. ยฉ 2006 ALM Properties, Inc.


On June 23, 2006, a panel of the United States Court of Appeals for the District of Columbia Circuit unanimously invalidated the SEC’s recent attempt to regulate hedge funds by requiring them to register as investment advisers. See Registration Under the Advisers Act of Certain Hedge Fund Advisers, 69 Fed. Reg. 72,054 (Dec. 10, 2004) (“Hedge Fund Rule”); Goldstein v. SEC, 451 F.3d 873 (D.C. Cir. 2006) (invalidating the Hedge Fund Rule).

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