Alternative Investment Management Association opposes an SEC recommendation, made in the staff's hedge fund report last September, that hedge funds - even those domiciled outside the United States - be required to register as investment vehicles.
The hedge fund industry group said, in a submission to the SEC, that a non-U.S. hedge fund manager is usually "already subject to adequate and relevant regulation in his own domicile and, very often, also in any place in which he operates; he should not be required to submit to separate or additional regulation by the SEC." It also said that "overlapping regulatory regulations - which would arise if U.S. regulation were also to be imposed - are to be avoided, as are duplicating regimes covering authorization, compliance, investigation, discipline and enforcement."
The statement said increasing the minimum total net worth requirement of a hedge fund investor to $1.5 million from $1 million would act as a trade barrier to non-U.S. managers because the requirement is significantly higher than the minimum requirement in other countries.
