SEC proposes increased disclosure for registered hedge funds

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The U.S. Securities and Exchange Commission on Wednesday proposed revisions that would require increased public disclosure from investment advisers, including registered hedge funds. The SEC is now seeking comments on the proposal, and attorneys expect that some registered managers could use the Goldstein decision to argue against these requirements.

The proposed changes will force hedge funds to provide more detailed and up-to-date information about business practices, conflicts of interest, and disciplinary history to clients through Form ADV Part II, and will be publicly available on the SEC’s web site.

Hedge fund managers hoping to avoid providing the additional disclosure may