On Friday, the Hedge Fund Association declared it opposes the creation of a hedge fund self-regulatory organization (SRO). In compliance with the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Government Accountability Office is currently weighing the feasibility and benefits of establishing such an organization.
In its released statement, the HFA urged members of the hedge fund industry to unite in opposition to what could be another wave of regulation that they claim would be costly and redundant.
“In our discussions with the GAO, the Hedge Fund Association has let it be known that we stand in firm opposition to any potential hedge fund SRO,” said David Friedland president of the Hedge Fund Association and president of Magnum U.S. Investments, Inc. “In light of the new registration requirements imposed by the Dodd-Frank Bill we believe that any SRO would prove to be entirely redundant and represent yet another regulatory cost that will suppress industry growth.”
“Hedge funds still represent the best outlet for entrepreneurship in the financial industry. By continuously raising the regulatory costs for a fund to operate, the government is making it harder and harder for smaller fund managers to stay in business,” said Ron Geffner, vice president of the Hedge Fund Association and a partner at law firm Sadis and Goldberg. “It is the HFA’s mission to speak up for the hedge fund industry and for entrepreneurship in finance. This is why we simply cannot stay silent when such a potentially damaging provision is still under consideration by regulators.”