California state officials are planning to hold at least one hearing after receiving substantial comments – all negative – on a controversial proposal to require all hedge funds with offices in the state to register either locally or with the Securities and Exchange Commission.
The proposed regulatory change drew about 100 pages of commentary and questions through 14 separate responses as of the closing date of the public comment period, which ended on September 26. The state is also expected to announce that it will take additional comments at least through the date of the one hearing, which is likely to be held in January.
The letters included a joint response from the Managed Funds Association and the Coalition of Private Investment Companies, the lobby group headed by Kynikos Associates founder Jim Chanos, as well as...