CFTC rules to add to Dodd-Frank cost burden -funds (Reuters)
Hedge funds are concerned that compliance with reporting regulations proposed by the U.S. futures regulator last week will require too much time and money, creating an unnecessary cost burden for the industry.
The CFTC last week proposed rules that would require more reporting from funds, commodity pools and commodity trading advisors -- rules that the Managed Funds Association said would require too much paperwork. "We don't mind being regulated," said one MFA member, but dual regulation for those firms who would have to report to both the CFTC and the SEC would create "unnecessary redundancies."
The CFTC plan unveiled last week would include a description of certain information about private funds, such as the amount of assets under management, use of leverage, counterparty credit risk exposure, and trading and investment positions for each private fund advised by the adviser.
Publication
Reuters
Date
January 31, 2011
Cross References
Dodd-Frank Act, Title VII, Secs. 404 406; CFTC Rules 4.5, 4.7, and 4.13 (a)(3) (4)