A U.S. appeals court was scheduled on December 9 to hear oral arguments that challenge the U.S. Securities and Exchange Commission's controversial new rule requiring many hedge fund advisers to register with the agency. The rule becomes effective in February.
The SEC was sued over the rule by Phillip Goldstein, who manages the hedge fund firm Opportunity Partners. Goldstein has argued that the Commission did not have authority to adopt the rule and that it misinterpreted an existing rule that exempted hedge funds from registration. Goldstein also contends that the SEC made procedural errors in adopting the rule.