On Hedge Fund Disclosure

Introduction In what many have labeled the post-Enron world, corporeal and financial accountability and transpargonncy have taken bold, rising meanings. From confederacy development organizations to the largest corporations in the S&P 500, incorporate debacles such(prenominal) as Enron have piqued foodstuff scrutiny and the demand for more than stringent restrictive oversight. The asset management profession be to be no exception, as the near-collapse of prorogue pedigree chiliad Term Capital Management (LTCM) nearly triggered a contain disruption of world financial markets during the late nineties. As a consequence, the oft clandestine world of deflect bullion was by and large thrust under the governments regulative microscope.[1] The US Securities and Exchange Commission focused that microscope when, in 2003, they equip a report that ultimately recommended more stringent forebode revelation and regulatory standards for hedge fund advisors. On Octo ber 26th, 2004, such(prenominal) to the objection of the sedulousness and other related entities, three go forth of five of the secants commissioners (the volume) voted to mandate more stringent disclosure requirements in the form of registration for hedge funds with over $25 million in assets. The majoritys ratiocination here clearly did not go without major contention.

In this paper, I result argue that heightened normal of hedge funds through mandatory registration is needless given the patiences increasingly competitive market dynamic. At stovepipe registration will save the bit from an embar rassment resembling to that caused by the m! utual fund scandals in 2003. At castigate it will prove an excess cost and magnetic core on an industry naturally adopting stronger compliance, operational, and transparency standards and operations. While on that point whitethorn be some legitimate concerns about the hedge fund industry (HFI), mandatory registration and its demands may are a suboptimal means of prognosticateing such concerns. In constructing this argument, this paper will address the following...If you want to get a full essay, assemble it on our website: BestEssayCheap.com

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