SEC Eases New Hedge Fund Reporting Rules

[Dover]

Source: WSJ

WASHINGTON—The Securities and Exchange Commission voted Wednesday to ease proposed requirements that hedge-fund and other private-fund advisers file periodic reports with regulators seeking to assess threats to the financial system.

The reporting requirements are mandated by last year's Dodd-Frank law, which for the first time gave the SEC power to collect confidential information from private-fund advisers, including proprietary data about fund positions.

However, in a nod to industry and Republican lawmakers' concerns, the SEC's final rule reduces the number of large hedge fund advisers that must complete extensive quarterly reports with the SEC.

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Read more: http://online.wsj.com/article/SB10001424052970203687504576655140415071046.html?mod=WSJ_WSJ_US_News_5

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Exclusive: SEC weighs easing hedge fund data rule

WASHINGTON (Reuters) - Regulators are considering easing a proposed rule so that fewer hedge fund advisers would have to hand over troves of confidential data to the government, according to people familiar with the deliberations.

The Securities and Exchange Commission is due to vote on a final rule on Wednesday on the threshold that would trigger extensive reporting requirements for advisers to large hedge funds and other private funds.

The rule is required by last year's Dodd-Frank financial oversight law and would give the SEC for the first time a direct window into massive funds' investment concentrations and trading strategies...cont'd

http://ca.reuters.com/article/businessNews/idCATRE79O8CC20111025

[valerief]

1. Of course. Could we expect anything else in this toilet of a country? nt

[Fumesucker]

2. That's the elites we have come to know and love..

I for one welcome our new financial overlords.

[ProSense]

3. They adjusted

the dollar amount from $1 billion to $1.5 billion and the frequency of filing on certain funds. Reuters

<...>

Originally, the SEC had proposed requiring advisers to hedge funds, private equity funds and liquidity funds with more than $1 billion of assets under management to be subject to the more extensive reporting requirements.

In the final rule, however, the threshold for hedge fund advisers will be $1.5 billion in assets under management. However, they will still need to file reports with the SEC quarterly, as previously proposed.

<...>

Under the final rule, assets under management of $2 billion will trigger the more extensive reporting requirements for private equity fund advisers. And even when they do hit that threshold, they will still only need to file with the SEC once a year instead of quarterly, as previously proposed.

Despite the easing of the rule for hedge fund and private equity fund advisers, the SEC is still opting to leave the $1 billion threshold for liquidity funds. Large liquidity fund advisers will also need to report to the SEC quarterly.

<...>

[Pale Blue Dot]

6. Oh, then that's ok.

:eyes:

[ProSense]

8. You know

"Oh, then that's ok."

...easing the dollar amount has no bearing on the rule itself, which is what I'm more concerned with. The rules are evidence that Dodd-Frank was a strong start in the right direction. Lowering the threshold can be more easily adjusted than having to rewrite the specifics of the rule.

Business Week

<...>

In today’s rule, required by the Dodd-Frank regulatory overhaul, all funds with more than $150 million in assets will be required to report asset and operational information that has not been collected by regulators in the past.

“We have produced a document that will address the dramatic lack of private fund information available to regulators today while easing the burden on private-fund managers producing the data,” SEC Chairman Mary Schapiro said before the vote.

The new rule defines large funds as hedge funds with more than $1.5 billion in assets, private-equity funds with $2 billion in assets, and liquidity funds with $1 billion. Those designated as large funds would have the highest reporting standards.

Under the new definitions, about 230 U.S.-based hedge funds and 155 private-equity fund advisers would be subject to the large-fund disclosure system. Hedge fund advisers will have to file the new Form PF every quarter.

<...>

[brentspeak]

19. Smells like propaganda n/t

[russspeakeasy]

4. Is this a great country or what ?

You can steal all the money you want, just do it in $1 1/2 billion bits. No more of this $5 trillion at a time shit.

[Snotcicles]

5. Here we go again. nt

[Katashi_itto]

7. Not a big deal. These are bandaid policies that don't do a thing to stop

our severed financial femoral artery. There are credible predictions now of in 9-11 months we suffer systemic fiat money collapse. Watch EUzone and what happens there.

Shit, we are in hock for around 18 times our GDP from the 1st bank bank out.

We just got ripped off for another...oh 72 trillion (whose counting... :P ) by BOA, last week.

Europe now wants another 100 trillion now to recapitalize it's "banks".

Don't worry about it. The system is now terminal. Just a matter of when.

Others groups know the system is terminal since if you step back and look, you can see major financial players positioning themsleves to MAKE money off a global collapse. Like Cantor did when he shorted T-Bonds, betting there would be a U.S. T-bill default. Same thing just on a massive scale.

The 1% honestly believes it can ride this out.

The Status Quo or 1% is about to get a rude awaking.

[MsLeopard]

9. Completely agree with everything you said

And welcome to DU! :hi:

[Pale Blue Dot]

10. THIS is actually the truest statement in this thread.

Thumbs up.

[Katashi_itto]

11. Why thank you all!

[truebrit71]

12. In your scenario what do you suggest folks do with their money?

Will cash money become useless, will the markets crater taking everything else with them?

I am asking a serious question btw...I have similar concerns but have no solid idea about alternatives to try and hold on to whatever minimal net worth I have...

[Katashi_itto]

13. Buy silver, it's poor man's gold. Plus its still low enough that you

can get into it easy enough. Buy physical stuff too, silver coin, bars whatever. Don't rely on certificates of ownership.

Invest oh say..10%, if you can, of your discretionary income in silver. More, if you can swing it.

Next invest in things like Russian utlities, German Utilities. Basically Utilities because you always need energy. Stay out of U.S. stuff. If things go south here, it would be really unstable here.

Look at the northren EU countries too to invest in.

Iceland is also a great place to invest in. They told the IMF to fuck off and now they are doing well. Look for places like that, that have low debt.

Stay away from Australia or places that climate change is having a real impact on.

2nd thing buy yourself a few guns and ammo. Don't go nuts just practical stuff, very basic weapon or two, nothing fancy.

If things go Mad Max here they could be used as barter or defense.

Stock up on canned supplies. This is all very practical too, in case of a natural disaster and not a Mad Max senario.

Stay the hell out of Italy, Greece, England, Spain, Portugal, Ireland... in essence 90% of the EU block. Germany will be ok, will probably take a beating though.

Finally whenever you hear a major bank chain brag about their "assets" replace asset with "debt" and multiple by five. This will give you a rough idea about how far they are really in the hole.

Remember debt can be carried as an asset on a balance sheet. One of the reasons for the foreclosure fraud is that the bank carrys the full amount of the house value to offset all the crap they have in toxic assets. Sort of like a seesaw the weight from the toxics are pushing the seesaw down and the banks are grabbing every bit of property they can get their hands on to push it back up. A no win situation.

Hope that helps.

[truebrit71]

14. Interesting ideas...

..I've been accumulating silver since it was less than $14 an ounce...sold some when it got over $45...I was hoping it would drop lower than $30 so I could get some more...

Canned goods, guns and ammo are for more extreme scenarios..or do you think the meltdown you are talking about would be that extreme?

[Katashi_itto]

16. It is more about how much risk you wish to take. With your family, friends etc.

Call it simple insurance.

The scouts call it being prepared. We are moving into a place on the map that could simply be labeled "here be dragons" We don't know.

[Katashi_itto]

17. The potential is for silver to hit 500 an ounce.

Watch the movement of other negative betas.

[Hotler]

18. Again welcome to DU.

Drop by Stock Market Watch some day. You would fit right in. It is a good group in there.

[defendandprotect]

15. More corrupt and criminal conduct by government -- !!!

[lonestarnot]

20. Fucking A.

[tomg]

21. Thank God. I am so relieved.

I was so worried about the hedge fund advisers. And the regulations meant they had to report on confidential information. I mean, it was confidential for a reason. Now that they have had at least some of the shackles of repressive regulation taken away, they can go out and create jobs for all of us. Hurray for the victory of the hedge fund advisers. It's lollipops and rainbows for all of us. In fact, it makes me want to sing.

http://www.youtube.com/watch?v=6-Blb1ozmrM&feature=related

Someone better tell the Occupy folks that justice has been done and they can all go home.

edited to add Singing

[Zorra]

22. More reason to support OWS. These people fucked up really bad.

They caused major damage to the world.

They have a problem with extensive reporting in the name of transparency?

Well, gee, that's just too bad, isn't it? They can easily afford it.