The House Financial Services Committee will hold a series of hearings to investigate the effect that hedge funds and private equity pools have on U.S. and global financial markets, according to a committee news release issued today.
The first hearing will be held March 13. The committees key interests include whether pension funds are sufficiently informed about their hedge fund investments to protect the interests of their members.
Separately, Sen. Charles Grassley, R-Iowa, proposed a legislative amendment that would authorize the SEC to require hedge fund advisers to register with the agency, according to a news release. A registration requirement is needed because pension funds are invested in hedge funds and millions of pension holders are in the dark about their exposure to hedge fund losses because transparency is so inadequate, Mr. Grassley said in the release, first reported Wednesday on Pensions & Investments website, www.pionline.com.
Mr. Grassley proposed attaching his registration amendment to homeland security legislation currently pending before the Senate; his amendment is relevant to the homeland security bill because reports have indicated terrorist links to some pooled investment groups, including hedge funds, according to the release.
The U.S. Court of Appeals in Washington overturned the SECs hedge fund registration requirement on June 23.