March, 05, 2010

Although more than a year has passed since the economic crisis exposed gaping holes in regulation, lawmakers are still debating how to protect consumers and the financial system.That has unnerved the trillion dollar alternative investment industry, according to various guests at the Reuters Private Equity and Hedge Funds Summit."In this volatile environment where lawmakers are catering to populist passions ... hedge funds are saying 'tell us what the rules are, and we are happy to do them,'" said Ron Resnick co-founder of regulatory consulting firm CounselWorks.

Congress is trying to craft a bill to overhaul financial regulation that would include reining in excessive risk-taking and shedding light on private pools of capital and the $450 trillion over-the-counter derivatives market, as well as ensuring that no firm is too big to fail.Among the slew of proposals being debated is one that would require advisers to hedge funds, private equity and venture capital funds to register with the U.S. Securities and Exchange Commission.

.

.