The SEC postponed action on a proposal to subject hedge fund managers to more stringent anti-fraud regulation to take more time to study the issue, according to John Heine, SEC spokesman. The proposal, a response to a June 23 U.S. appellate court ruling striking down an SEC registration requirement for hedge funds, was originally scheduled for a vote by commissioners today.
"The commissioners and staff felt more comfortable taking another week to make sure the technical language of the anti-fraud provision appropriately addresses the court's decision," Mr. Heine said. A vote could come at another SEC meeting as soon as Dec. 13, but Mr. Heine said the proposal has yet to be officially rescheduled.
