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ARTICLE · 05 FEBRUARY 2009

Castle And Capuano Propose Hedge Fund Regulation Package

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Representatives Michael Castle and Michael Capuano, introduced a package of legislation last week aimed at regulating the hedge fund industry.

United StatesFinance and Banking
John Brunjes
John Brunjes
Mark Dendinger
Mark Dendinger
Jonathan Gill
Jonathan Gill
Robb Tretter
Robb Tretter

Representatives Michael Castle (R-DE) and Michael Capuano (D-MA), introduced a package of legislation last week aimed at regulating the hedge fund industry. As discussed in our January 30, 2009 Client Alert, Senators Charles Grassley (R-Iowa) and Carl Levin (D-Mich.) recently introduced a similar measure in the U.S. Senate.

The legislative package introduced by Representatives Castle and Capuano includes three bills that seek to (1) compel registration under the Investment Advisers Act of 1940, as amended (the "Advisers Act"), of private investment fund managers previously exempted under the Advisers Act; (2) require pension plans to disclose their hedge fund investments and (3) direct the President's Working Group on Financial Markets to study and report on the hedge fund industry, including recommendations for action to the Congress. Each bill is discussed in greater detail below.

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