Hedge Funds

Hedge fund battles SEC over registration rule

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A lawsuit filed in New York is seeking to derail the Securities and Exchange Commission's initiative to make hedge fund registration compulsory by early 2006.

The suit, filed by New York-based Opportunity Partners and its principal Phillip Goldstein, challenges the SEC's authority to mandate disclosure of private partnerships, and investments and accuses the regulator of abusing its authority.

This is the first formal challenge to the new SEC rules on hedge fund registration that passed in October after contentious debate. The SEC has yet to comment on the suit, but the agency's general counsel did say it would vigorously fight