Hedge Funds

Law firm questions SEC's authority over hedge funds


Law firm Wilmer Cutler Pickering Hale and Dorr claims that the Securities and Exchange Commission does not have the authority to require investment advisers with fewer than 15 clients to register with the Commission.

In a letter submitted to the SEC in response to the agency's recently proposed rule to require hedge funds to register, the law firm attacks the Commission's plan to "look through" funds to count clients, one of the central tenets of the SEC's proposal.

Under the current scheme, a hedge fund adviser can count the fund it runs as a single client. The proposed rule