The Treasury Department has issued draft legislation that would require all money managers with more than $30 million in assets under management to register with the SEC.
Under the proposal, managers that would be required to register would include hedge funds, private equity firms, venture capital companies and other private pools of capital.
Managers would be required to report assets, leverage and the off-balance-sheet exposure of their funds, and to establish comprehensive compliance programs within their companies, according to a Treasury Department news release.
Also, the SEC would conduct regular examinations of the registered funds, sharing information with the Federal Reserve and a new financial services oversight council that has been proposed by the Obama administration.
“This information would help determine whether systemic risk is building up among hedge funds and other private pools of capital,” the news release said.
Also today, the Treasury Department issued two draft legislative proposals that would give shareholders of publicly traded companies a non-binding vote on executive compensation packages and ensure that companies' executive compensation committees would be independent.
The say-on-pay proposal would require a non-binding shareholder vote on executive compensation as disclosed in the proxy for any annual meeting held after Dec. 15.
The second proposal would set standards to ensure that compensation committee members do not have financial conflicts with management and give them “the authority and funding to retain their own compensation consultants and counsel to help them set compensation packages that protect shareholder interests,” according to a separate Treasury release.
Meg Reilly, Treasury spokeswoman, did not return a call and e-mail by press time.