The Hedge Fund Study Act was passed by the House of Representatives on Wednesday, confirmed Marisol Garibay, spokeswoman for the House Committee on Financial Services. The act would direct the President's Working Group on Financial Markets to issue a study identifying the potential risks of hedge funds and address their "changing nature" in light of recent growth and greater availability to investors. The last hedge fund report was done in 1999, according to a committee news release.
The bill has been referred to the Senate. If the act is signed into law, the study would have to be completed within 180 days, Ms. Garibay said. It was introduced in the House Sept. 14 by Rep. Michael N. Castle, R-Del.; Rep. James A. Leach, R-Iowa; Rep. Barney Frank, D-Mass.; and Rep. Scott Garrett, R-N.J.
