What the SEC report recommends

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• Requiring hedge fund management firms to register as advisors under the Advisors Act. Such a move would effectively raise the minimum investor asset requirement to that of "qualified clients, or $1.5 million of net worth from $1 million of net worth". Managers would have to provide basic information about their businesses and submit to periodic examinations.

• Revising regulations under the Advisors Act to require advisors to submit a form specifically designed for hedge funds, rather than the current ADV.

• Requiring funds of funds and other registered entities that invest in hedge funds to value their investments in