Hedge funds regulation is a rare entity because the hedge funds regulation has basically been a mute subject among all types of investors. Decades have passed and all regulatory agencies have turned their back and overlooked the activity that has been occurring year after year. Recently, the Hedge Fund Research has been calling for closer scrutiny of the hedge funds regulation. The idea is to have hedge funds regulation equal too or tighter than all other investments by individual investors and all corporations.
The risk that is involved with the hedge funds regulation is that if and when there is a major catastrophic event it will ripple through the entire market and affect all other investments. Today, the Treasury Department is beginning to research the many hedge funds to decipher what type of hedge funds regulations are going to be required in the future to keep all hedge funds and other privately run funds solvent. There is a genuine fear that without hedge funds regulation the market is susceptible to a catastrophic event because no state or federal agency took an interest to head this off into a palatable direction.
The Security and Exchange Commission has yet to reach a threshold in the process of decision making as to how to confront the issues surrounding the hedge funds regulation without affecting all other investments that are bought and sold on a regular basis. The Treasury Department is considering a closer scrutiny of all private investments and that would include the investment of venture capital and the investment of private equity. What is not known is how much hedge funds regulation the Treasury Department is taking into consideration. Will the closer scrutiny through the passage of new laws concerning the hedge funds regulation deter other private investments?
One of the possibilities under consideration by the Treasury Department is to execute a mandatory threshold before any private investments will be required to register with the Security and Exchange Commission. However, the Treasury Department has not come up with a monetary amount to be utilized as the threshold point, leaving many private investors waiting, watching, and listening.
Hedge funds regulation is still a major issue with the Treasury Department. In order to protect the integrity of all financial exchanges through the daily market it will be necessary to add hedge funds regulation to the list of private investments that require specialized investigation and ultimately, regulation through the Security and Exchange Commission. Whether this will alter the investment process of private investors will become noticeable after hedge funds regulation are put into place and formally executed.