Podcast Preview: Interview with Kelli Moll of Schulte Roth & Zabel on Hedge Fund Regulation

The proposal to regulate hedge funds — the Private Fund Investment Advisers Act — hasn't generated Town Hall heat but it is being analyzed and debated by lobbyists and congressional leaders.


18 September 2009

Health care isn't the only proposal generating debate in Washington. The proposal to regulate hedge funds — the Private Fund Investment Advisers Act — hasn't generated Town Hall heat but it is being analyzed and debated by lobbyists and congressional leaders. In Europe, the EU's Directive for Alternative Investment Fund Managers, has proved to be a sticky wicket as various countries jockey to shape the guidelines to favor home town industries (custody in Ireland, hedge funds in Great Britain).

Looking for answers about what's on the regulatory table and what it could mean for your business? We're here to help. Actually Kelli Moll, a partner at Schulte Roth & Zabel will be doing the helping by answering questions in an Intralinks-sponsored podcast series that launches September 23rd. Kelli will field questions about the US and EU regulations, systemic risk, selective disclosure and the MFA guidelines for establishing transparency between funds and their investors.

Since all DVDs and CDs now have bonus material we wanted to do something for our loyal readers. So here, exclusively for our blog readers, is a bonus question that isn't available in the podcast series:

Q: Does the SEC have enough qualified examiners to oversee 4,000+ hedge fund managers?

Kelli Moll: The size of the SEC's staff for overseeing the managers of hedge funds, private equity funds and venture capital funds is a valid issue. The SEC could address this by hiring more examiners or reducing the number of fund managers they need to monitor by raising the threshold for registration from $25M to $50M AUM. Fund managers under $50M would continue to be regulated by their State government. The SEC might also want to think about paying examiners more. It's tough to compete with the private sector for talent when the compensation gap between the private sector and the government is so large.